Fed easing bets drive dollar lower
The dollar is cruising toward an eighth consecutive day of losses—its longest losing streak since 2020—as the Japanese yen climbs and traders double down on expectations for an aggressive easing campaign from the Federal Reserve. Japanese ten-year yields are holding near their highest levels since the global financial crisis and rate differentials are tightening in the yen’s favour after Bloomberg reported that Prime Minister Sanae Takaichi’s government wouldn’t oppose a rate hike at the Bank of Japan’s meeting on December 19. Odds on a hike have climbed to 89 percent from less than 17 percent in late November after Governor...