June 13, 2021
Economy

Dollar slides to multi-month lows as Fed rate hike fears fade

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NEW YORK — The dollar extended its slide

on Tuesday, touching its lowest level since late February, as

increased risk appetite lured investors away from the safe-haven

greenback.

U.S. Treasury yields stalled as market participants grew

increasingly confident that the Federal Reserve will hold off on

hiking interest rates for the time being, despite worrisome

near-term inflation spikes.

“We’re seeing this dollar weakness against numerous pairs

and the market is starting to believe the Fed that we’re going

to have low interest rates a lot longer,” said Edward Moya,

senior market analyst at OANDA in New York.

“That’s going to be bearish for the dollar. You’ll

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