The dollar has slipped this month as the Federal Reserve stuck to its message that it won’t raise interest rates soon despite forecasts that the U.S. economy will recover faster than its peers.
The greenback is down about 1.2% against the currencies of its biggest trading partners so far in April. Before a slight rise Friday, the dollar had seen its worst seven-day losing streak since December.
The fall in the greenback interrupts a rally so far this year: The ICE Dollar Index climbed about 4% from early January to the end of March.
The dollar’s weakness is unlikely to last because the U.S. economy is expected to outpace others, according to Oliver Brennan, head of research at TS Lombard in London.
Right now, the U.S. is expected to grow about 2 percentage points more than the eurozone in the year ahead, Mr. Brennan said. The gap hasn’t been that large since early 2017, when the dollar was much stronger against the euro: Back then, $1 bought about €0.94, whereas now it buys €0.84.
