Economics
Citigroup Survey Points to Headwinds for Dollar on Go-Slow Fed
- Investors see one rate hike in 2016, gradual path to follow
- Greenback down 5 percent after three straight years of gains
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Citigroup Inc. said a survey of investors this week shows asset managers are positioning for the Federal Reserve to raise interest rates once this year followed by a slow approach to further monetary tightening, presenting headwinds for the dollar.
The poll of about 350 representatives of hedge funds, institutional investors and others reveals market sentiment as the U.S. currency has weakened this year after three straight annual gains. Foreign-exchange volatility increased Thursday as the greenback traded close to the weakest level since May.