Dollar Kicks Off 2024 With Best Day Since March on Fed Doubt
- Traders re-evaluate scope of interest-rate reductions in 2024
- Dollar extends climb on Wed.; yen and Aussie fall most in G-10
The currency fell 2.7% last year, the worst annual performance since the Covid-19 pandemic shocked the world in 2020.
Photographer: Valerie Plesch/BloombergThis article is for subscribers only.
The dollar kicked off the new year with its biggest daily jump since March as traders pared back bets on the scale of the Federal Reserve’s 2024 interest-rate reductions.
The Bloomberg Dollar Spot Index closed higher by more than 0.7% on Tuesday, its biggest one-day advance since the wake of the regional banking turmoil more than nine months ago. The greenback advanced another 0.3% on Wednesday, with the Japanese yen, Australian dollar and Swiss franc losing the most among peers in the developed world.