Dollar Falls to 9-Month Low as Traders Look for Yield Overseas
- South African rand climbs with Brazil's real, New Zealand kiwi
- Investors lowered wagers on greenback strength for fifth week
Yen Struggles to Advance for Seventh Day
The dollar slumped to its lowest in more than nine months on Monday as speculation that the Federal Reserve won’t raise interest rates anytime soon spurred a search for yield outside the U.S.
The Bloomberg Dollar Spot Index, which tracks the currency versus 10 peers, tumbled in New York to its lowest since June as traders pushed back expectations for a rate increase by year-end. Currencies of commodity exporters, including South Africa’s rand, the Brazilian real and the New Zealand dollar, had advanced as investors reallocated money to higher-yielding assets. Eisuke Sakakibara, the former Finance Ministry official in charge of currency intervention in Japan, said the dollar may drop to 100 yen by year-end.