The dollar fell from the highest level in 14 months against its major peers after data showed U.S. industrial production unexpectedly dropped in August.
The Bloomberg Dollar Spot Index climbed earlier amid bets the Federal Reserve will change its stance this week on keeping rates low for a “considerable” time after ending bond purchases. U.S. Treasury yields declined, damping the appeal of dollar-denominated assets, and the greenback fell against the yen for the first time in six days. A gauge of emerging-market currencies decreased.
“Soft data did contribute to today’s move; Treasury yields are slightly lower,” Eric Viloria, a strategist at Wells Fargo & Co. in New York, said in a phone interview. “There’s a bit of cautiousness ahead of the Fed meeting. Positioning in dollar longs is a bit stretched. That could restrain the dollar going forward.” Long positions are bets a currency will gain.
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