Dollar Gains Threatened as Growth Slows

U.S. currency's strong performance in May may prove fleeting

The dollar’s best monthly performance since November may prove fleeting as a slowing U.S. economy and falling short-term interest rates encourage investors to use the currency to fund investments in higher-yielding assets.

The U.S. currency’s value will be unchanged from current levels by year-end, down from last month’s predicted 2 percent appreciation, according to analyst forecasts compiled by Bloomberg. Bets remain tilted against the greenback even after last month’s 2.3 percent gain in IntercontinentalExchange Inc.’s Dollar Index, Commodity Futures Trading Commission data show.

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