Dollar Index Falls on Less Speculation of Fed Stimulus Pullback
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The Dollar Index slid to its lowest level in almost four months on speculation the Federal Reserve won’t raise lending rates even if it elects to taper bond-buying monetary stimulus.
The yen gained against the greenback, extending its largest three-day gain since 2010, as the Nikkei 225 Stock Average entered a bear market, spurring demand for less-risky assets. The greenback fell even as U.S. retail sales rose more than forecast in May. The euro rose versus the dollar for a fourth day as European Central Bank Executive Board member Yves Mersch expressed uncertainty about employing negative interest rates.