Dollar Drops Versus Higher-Yielding Peers; Ruble Slides

The dollar declined versus higher-yielding counterparts as traders pushed out expectations for the Federal Reserve to increase interest rates amid signs of slowing global growth.

The currencies of Australia and New Zealand gained against the greenback after Dallas Fed President Richard Fisher said he continued to be “hawkish” on rates but wanted “to be sensible.” U.S. Treasury yields were at almost a 17-month low. The yen weakened as a media report fueled bets Japan’s pension fund is moving closer to increasing holdings of stocks and overseas assets. Brazil’s real was the worst performing major currency as prospects for a new government dimmed.