Dollar Suffers Biggest Plunge Since 2009 as CPI Smacks Fed Bets
- Yen gains almost 4%, leading gains among developed peers
- Yen, rand can outperform as dollar weakens, says HSBC
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The dollar had its worst day since 2009 after Thursday’s US inflation report surprised traders with slower growth in consumer prices, driving speculation that the Federal Reserve will ease the pace of its interest-rate increases.
The Bloomberg Dollar Spot Index fell 2% after a key inflation gauge cooled in October by more than expected, the biggest drop since 2009.