Hedge funds ramp up Dollar shorts on bets for slower Fed hikes

Speculation that the Fed may slow the pace of interest hikes as hedge funds continue to grow more bearish on the dollar.
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By Ruth Carson

Hedge funds are growing ever more bearish on the dollar, underscoring speculation that the Federal Reserve may slow the pace of its interest-rate hikes.

Bets against the greenback swelled to 30,457 contracts last week, the most since August 2021, according to data from the Commodity Futures Trading Commission on eight currency pairs compiled by Bloomberg. Swap contracts show investors now expect the US policy rate to peak at under 5%, down from 5.06% after data on Friday showed US wage growth decelerated last month.

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