Skip to content
Subscriber Only

Dollar Posts Biggest 2-Day Drop Since March as 2016 Rally Erased

  • Currency falls versus all major peers except U.K. pound
  • Risks to U.S. economy push 2016 rate-increase likelihood lower
Video player cover image

How Markets Are Helping the Fed Do Its Job

Updated on

The dollar posted its biggest two-day drop since March, extending a decline that wiped out its rally at the start of the year.

The greenback fell against all of its 16 major peers except the pound, which was weighed down by the Bank of England ’s unanimous vote to keep interest rates unchanged. Signs of a slowing U.S economy have hurt the dollar by derailing wagers on diverging policies between central banks. Currency traders are catching up to the bond market, where 10-year yields sank to the lowest in a year on Wednesday and futures sent the strongest signal yet that traders expect the Federal Reserve to stand pat on rates in 2016.