Dollar Drops to Weakest Since August as Traders Eye Fed Pivot

  • Fed kept rates steady Wednesday, signaling end of hikes
  • Dollar gauge poised for second-consecutive monthly loss
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The dollar dropped to a four-month low as traders digested the clearest signal yet that the Federal Reserve’s aggressive hiking campaign is over.

The Bloomberg Dollar Spot Index dropped as much as 0.5% to its lowest since August on Thursday, extending losses from the day prior after Fed officials penciled in a sharper pace of rate cuts than they had seen in September. The US central bank kept rates steady for a third consecutive time.