Economics
Dollar Drops for Second Day as Traders Rule Out June Fed Move
- Markets see U.S. central bank on hold until at least December
- Greenback has weakening bias in near term, Barclays says
Will We See a Greenback Comeback?
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The dollar extended its slide for a second day as traders ruled out the possibility that the Federal Reserve will raise interest rates at its meeting next week.
The currency fell against most of its major peers, depressed by tepid U.S. job growth and comments by Fed Chair Janet Yellen that didn’t signal timing for the central bank’s next move. Traders see a zero percent chance the Fed will raise rates at its June 15 meeting, down from 22 percent a week ago, futures contracts indicate. The greenback posted its largest losses against the Brazilian real, Mexican peso and South African rand.