Dollar Tumbles Most in a Year as Traders Bet on End of US Hikes
- Currency falls as yields tumble, rate-cut bets moved up
- Easing consumer-price inflation spurs reset across markets
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The US dollar tumbled by the most in a year after soft inflation data led traders to ramp up bets the Federal Reserve will start cutting interest rates by mid-2024, sending Treasury yields plunging.
A Bloomberg gauge of the dollar tumbled as much as 1.3% on Tuesday, the largest such drop since November 2022. It stayed close to the previous day’s close on Wednesday, helping propel the won and ringgit to the top of Asia’s currency rankings. The moves followed a report that showed US headline and core inflation in October slowed more than economists had forecast.