The US dollar recorded its sharpest weekly decline in more than three months, closing out a session marked by renewed skepticism toward Federal Reserve policy.
Bloomberg’s Dollar Spot Index fell 1.3% during the week, reflecting a broad-based loss of confidence in the greenback’s near-term trajectory.
The selloff was fueled by concerns that the central bank may not move forcefully enough to rein in persistent inflationary pressures.
Market participants are increasingly questioning whether the Fed’s current stance is sufficient to anchor price stability, leading to a rapid repricing of dollar assets.
This development marks a significant shift in sentiment.
Just days prior, traders had boosted their bullish dollar bets ahead of the upcoming Fed meeting, pushing positioning to the most upbeat levels seen since 2014, according to Commodity Futures Trading Commission data released Friday.