Currencies
Dollar Has Best Month in Two Years as Rate-Cut Bets Ease
- US election is sparking rush to safety, aiding the greenback
- Fed’s favored inflation measure saw biggest gain since April
The US dollar posted its biggest monthly gain in more than two years as a resilient economy prompts traders to dial back expectations for how quickly the Federal Reserve will lower interest rates.
The Bloomberg Dollar Spot Index advanced nearly 3% in October, the most since September 2022. The move was driven by a sharp jump in Treasury yields, which gave investors incentive to shift cash into the US. Positioning ahead of next week’s presidential election also played a role, since the dollar is frequently used as a temporary haven from financial-market volatility.