Dollar Hits Fresh Four-Month Low as Traders Follow Recent Trends
- Euro-dollar option bets turn bullish first time in four months
- G-20 statement shift to protectionism keeps volumes low
Dollar Hits Four-Month Low on Fed's Dovish Hike
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The greenback extended its recent decline, with the Bloomberg Dollar Spot Index touching its lowest level since November, pressured by investors who kept the latest bearish trend intact.
A Japanese holiday and a rather uneventful Group-of-20 meeting that left most business unfinished suppressed flows in the major currencies; dropping a reference from the G-20 statement to resist trade protectionism weighed on the dollar, with macro and leveraged accounts adding to shorts positions, according to a London-based trader who asked not to be identified as he isn’t authorized to speak publicly. Volumes were near the lowest they have been in March, a Europe-based trader noted.