Dollar Drops Before Payrolls on Rate-Cut Bets; Yen Strengthens

The dollar dropped against all its major peers as investors ramped up bets on Federal Reserve interest-rate cuts following fresh signs of weakness in the US economy.

Bloomberg’s gauge of the US currency fell for a fourth day, with the yen leading major peers higher following Japan’s recent election, after softer-than-forecast retail sales data published Tuesday reinforced the case for more Fed easing. Concern ahead of US payrolls data due Wednesday and inflation numbers on Friday are giving traders further reason to trim dollar positions.