(Reuters) The U.S. dollar fell on Wednesday despite a report of stronger-than-expected inflation data and an increase in interest-rate expectations, raising the possibility that the currency is in a period of secular downturn.
John Doyle, vice president of dealing and trading at Monex Inc in Washington, was not convinced of a secular downturn. The dollar was the beneficiary of widening interest rate differentials while the Fed was the only major central bank raising rates. But “even though the U.S. Fed is outpacing other central banks, they are no longer the only guest at the policy tightening party,” he said.
