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Dovish Fed spurs dollar's biggest two-day drop in a year
The U.S. dollar sank against its rivals on Thursday, putting it on track for its biggest two-day drop in a year after the Federal Reserve signaled it was ready to cut interest rates as early as next month. The Fed joined global peers such as the European Central Bank and the Reserve Bank of Australia this week in signaling that more policy stimulus is needed to maintain growth. That fueled a rally in higher-yielding currencies such as the Australian dollar AUD= and the Korean won .[nL2N23R01O] “Certainly the market has taken this as a dovish turn and as a reason to sell dollars,” said Lee Ferridge, head of macro ... (full story)