Dollar Bulls Face Historical Hurdles With Fed Close to Rate Hike
- Greenback weakened after three previous tightening cycles
- U.S. currency reaches strongest level since July after CPI
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Dollar bulls counting on a surge in the greenback should the Federal Reserve raise interest rates this year are fighting with historical precedent.
The U.S. currency reached its strongest level since July on a report showing above-forecast inflation before next week’s central-bank meeting. The greenback pared its decline this year following the Fed’s rate increase in December. That mirrors the Intercontinental Exchange Inc. U.S. Dollar Index’s average 6 percent drop during the six months after the start of the Fed’s previous three central-bank tightening cycles.