Year of the Rabbit Delivers a Thumping to the Greenback
The dollar is tumbling this morning as a narrowing in expected growth differentials between the United States and other major economies spurs outward capital flows. After a number of Federal Reserve officials laid out the case for a slower pace of rate hikes and a series of data releases showed softness emerging in American industrial production and consumer consumption levels, investors are piling into bets on the euro, yen, and commodity-exporting emerging markets. Speculators are net short the dollar on a scale not seen since the middle of 2021 – just before the last historic rally got underway. Make of...