U.S. Dollar Drops on Fed Tapering Bets

The dollar fell versus 15 of its 16 most-traded counterparts on speculation the Federal Reserve will reassure investors that policy makers won’t be quick to raise interest rates at next week’s meeting.

New Zealand’s dollar jumped the most in more than a year versus its U.S. peer after central-bank Governor Graeme Wheeler said a removal of monetary easing “will likely be needed in the future.” The U.S. currency extended losses after the Wall Street Journal’s Jon Hilsenrath wrote that the Fed will probably keep its bond-buying program unchanged next week.

“Hilsenrath today has detailed thoughts that the Fed will remain with an easing bias, and that taper is talk, and only talk,” Douglas Borthwick, a managing director and head of foreign exchange at Chapdelaine FX in New York, wrote today in a note to clients. “It’s certainly not an actionable event any time soon.”


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