the dollar fell monday as investors took profits on the u.s. currency<u+2019>s longest rally in over four years. the wsj dollar index, which measures the u.s. currency against 16 others, was down 0.5% to 91.21. the dollar had risen for 10 consecutive trading sessions, its longest winning streak since may 2012. the greenback has surged since the nov. 8 presidential election, as investors bet president-elect donald trump <u+2019>s plans to boost fiscal spending and cut taxes will support u.s. growth. investors have also grown more confident that the u.s. federal reserve will raise interest-rates next month, a move expected to support the dollar by making the currency more attractive to yield-seeking investors. fed-funds futures, a popular tool for traders to bet on u.s. interest rate policy, shows a 95% probability that the fed lifts rates at its december meeting, according to data from cme group . still, analysts have warned that the dollar<u+2019>s rapid rise has left the currency vulnerable to a selloff. thin trading around the thanksgiving holiday in the u.s. this week could also exacerbate moves, analysts say. <u+201c>the rally has run too far, too fast,<u+201d> wrote analysts at td securities in a research note. <u+201c>thin holiday trading could be one trigger for a squeeze given the scope for profit-taking.<u+201d> meanwhile, emerging-market currencies rebounded against the dollar monday after a sharp selloff. the dollar was down 0.9% against the brazilian real, 1% against the mexican peso and 0.2% against the singapore dollar. a stronger dollar pressures emerging markets by making their dollar-denominated debt more expensive to pay back, while higher u.s. interest-rates make assets in countries like mexico and brazil less attractive to investors searching for yield. write to chelsey dulaney at chelsey.dulaney@wsj.com
dollar falls after 10-day rally    - wsj
chelsey dulaney