Dollar’s Worst Week in Months Erases 2023 Gains on Rate Cut Bets
- US currency on track for biggest monthly drop since Nov. 2022
- History suggests dollar rallies rarely go beyond three years
Photographer: Eva Hambach/AFP/Getty Images
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Traders speculating that the Federal Reserve is finally done with interest rate increases have put the US dollar on the defensive once again.
A Bloomberg gauge of the greenback retreated on Friday, extending its weekly drop to 1.5% — the biggest such slump since mid-July — and erasing its 2023 gains. A weaker dollar also bolstered this year’s worst performing Group-of-10 currency, the yen.