Economics
Dollar Plunges Most in 2 Months as Weak GDP Signals Fed on Hold
- Fed fund futures indicate just 34% chance of rate hike in 2016
- Investors look to payroll data next week for further clues
U.S. Economy Expands Less Than Forecast
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The dollar tumbled the most in almost two months after a report showed U.S. economic growth fell short of expectations in the second quarter, damping speculation the Federal Reserve will raise interest rates this year.
The greenback fell against all 16 major currencies tracked by Bloomberg after the Commerce Department said gross domestic produce rose at a 1.2 percent annualized rate in the April-June period, less than half the 2.5 percent median forecast of economists surveyed by Bloomberg. Fed officials said after their policy meeting this week that "economic conditions will evolve in a manner that will warrant only gradual increases in the federal funds rate.”