Economics
Dollar Falls to Lowest Since November on Weak Inflation Outlook
- Yen strengthens against dollar as Treasury yields decline
- Morgan Stanley sees greenback declining across the board
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The dollar headed for its biggest weekly loss since July after a measure of U.S. inflation expectations dropped to a record low.
The Bloomberg dollar spot index touched its lowest since Nov. 11 after a University of Michigan survey showed long-term inflation expectations dropping to a record. The greenback added to declines seen after the Federal Reserve disappointed traders this week with its failure to make more aggressive forecasts for rate increases. Easing political risk in Europe also doesn’t bode well for the dollar, Morgan Stanley said.