The dollar is on track for its sharpest weekly drop in more than a month ahead of a Federal Reserve meeting that’s expected to launch a series of interest-rate cuts.
The Bloomberg Spot Dollar Index is down 0.2% in the week, the most since August. Lackluster US labor market data have cemented bets for 75 basis points of rate cuts by year-end, even as relatively sticky inflation suggests the greenback won’t face a sudden slump and options traders remain split on the dollar’s next leg.