Dollar, Stocks Drop as Fed Minutes Tilt Dovish: Markets Wrap
- Near-term rate hike signaled, but inflation debate persists
- Crude rises before OPEC meeting; yen reaches nine-week high
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The dollar suffered its biggest decline in more than eight months, while U.S. stocks ended the day lower, after minutes from the latest Federal Reserve meeting indicated officials expect inflation to remain persistently low even as support for an interest-rate increase grows.
Bloomberg’s dollar spot index fell to the lowest level since October as Fed officials meeting earlier this month saw an interest-rate increase in the near term even as divisions persisted over the policy path forward amid tepid inflation. Treasuries added to gains, pushing the 10-year yield to 2.32 percent, and oil rallied.