Euro Set for Longest Rally in Almost Two Decades as Dollar Sinks
- Options point to further gains and hedge funds add exposure
- Euro buoyed by a broadly weaker dollar on the back of US CPI
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The euro was headed for its longest winning streak against the dollar since 2004 as investors bet the Federal Reserve is close to ending its campaign of interest-rate hikes.
The common currency rose as much as 0.4% to $1.1276 on Tuesday, extending gains into a ninth day and reaching the strongest level since February 2022. The pair has jumped 4% in less than two weeks, bringing its year-to-date advance to 5.1%.