The U.S. dollar fell for a second straight session against a basket of major currencies on Monday after traders unwound bullish dollar positions on the likelihood that Federal Reserve policy will be accommodative over the near term.
The dollar added to its losses against the euro following a Fed statement on March 18 that suggested a less aggressive timetable for hiking interest rates. Last week was the dollar’s worst week against the currency since late 2011.
“There’s a very large long-dollar position in the market, and what we appear to be facing is an unwind of that position,” said Richard Cochinos, head of Americas G10 FX strategy at Citi in New York.
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.