Dollar Falls, Bonds Climb on Fed Wagers; Oil Enters Bull Market
- S&P 500 closes near record high as energy companies rally
- Nikkei 225 futures mixed amid yen gains; nickel advances
EM Set to Benefit from Weaker Dollar, Says Dryden
Bets U.S. interest rates will remain low amid unprecedented global stimulus sent the dollar to its weakest level in eight weeks against the euro, spurring bond gains. American stocks closed near record highs as oil entered a bull market.
The greenback retreated against most of its major peers as the probability of a U.S. rate increase by year-end slipped to 47 percent, futures data compiled by Bloomberg show. That outlook was also felt in the bond market, where Treasury yields declined as Morgan Stanley said investors are overestimating the odds of higher borrowing costs. Energy companies led gains in the S&P 500 Index as oil capped a 22 percent advance from its early August low in New York, while Brent crude topped $50 a barrel in London. Base metals also rose.