The dollar’s rally from an eight-month low could be fleeting as the growing view that the Federal Reserve will slow the pace of interest-rate hikes is likely to keep selling pressure on the US currency.
The Bloomberg Dollar Spot Index made slight gains on Monday, but remains down nearly 2% since the start of the year as investors have sold the greenback in droves. Easing US inflation expectations has prompted funds to ditch the ultimate haven asset, triggering a rebound in most major currencies.
