Dollar Is ‘Best of a Bad Bunch’ in Surprise Turn for Wall Street
- Rates pivot seen giving greenback surprise boost against peers
- Dollar has climbed for six days following Fed’s rate decision
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As global central bankers put their tightening plans on hold, the dollar may emerge again as a winner. Not because it’s particularly attractive, but because it’s proving to be the best of a bad lot.
From the Reserve Bank of Australia to the European Central Bank, officials are acknowledging a rising tide of risks, and shifting their monetary-policy outlooks as a result. The upshot is that even with the Federal Reserve signaling it’s done hiking interest rates for the time being, traders increasingly see the U.S. currency holding its own as the world’s doves gain the upper hand. Since the Fed’s pivot last week, the greenback has gained for six straight days.