Dollar Drops to Near Four-Month Low on Bets of Fed Rate Cuts
- Bloomberg Dollar Spot Index falls to lowest since early Aug.
- Dovish central bank speak increases wagers on rate cuts
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The dollar slid to the weakest level since early August as swap traders ramp up bets the Federal Reserve will cut interest rates as early as May.
The Bloomberg Dollar Spot Index fell for a fifth day as fears of a recession and dovish Fed commentary spurred investors to wager the central bank will have to reverse its most aggressive tightening cycle since the 1980s.