Dollar Gains at Month-End as Traders Await BOE, Next Fed Chair
- Greenback sets longest monthly winning streak this year
- Loonie drop after data offsets pound gain before BOE meeting
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The dollar gained at month-end despite portfolio rebalancing that was expected to result in greenback selling, as markets awaited the start of central bank meetings and the nomination of the next Fed chair.
The Bloomberg Dollar Spot Index advanced less than 0.1 percent as the greenback gained versus most of its G-10 peers, with the pound strongly outperforming. Sterling has risen this week before a Bank of England meeting, where investors widely expect the first rate increase in a decade. The biggest losers of the day were the Canadian and New Zealand dollars and the yen; some rebalancing models had anticipated dollar-yen demand.