US Dollar Drops to Three-Week Low as Traders Weigh a Fed Pivot
- Euro advances past parity with the dollar; pound climbs
- Traders to keep an eye on further signs of US slowdown
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A gauge of the dollar’s strength fell to a three-week low as traders bet the Federal Reserve will temper the pace of its rate hikes amid signs the world’s biggest economy is starting to slow.
The Bloomberg Dollar Spot Index fell as much as 1% on Wednesday, sliding along with benchmark Treasury yields for a second day. While a 75-basis-point hike next week is still fully priced, traders only see a 50% chance of an increase of that size in December, down from 80% last week.