- The US dollar has soared this year but is on pace for its largest monthly loss since 2010.
- In November, it has fallen 4.2% against a basket of currencies, according to the WSJ Dollar Index.
- Still, the greenback remains up more than 10% on the year after hawkish Fed policy powered a steep climb.
After hawkish Federal Reserve policy spurred a banner year for the US dollar, the currency is now on pace for its largest monthly decline since September 2010, Dow Jones Market Data shows.
As November winds down, the greenback has shed 4.2% in the month against a basket of other currencies, according to the WSJ Dollar Index. Elsewhere, the British pound has jumped more than 4% in November, the euro has climbed roughly 4.2%, and the Japanese yen's surged more than 5.9%.
Since central bankers have embarked on an aggressive monetary policy tightening path over the last year, the dollar has soared. In late September, the currency was up more than 16% on the year. After this month's sharp decline, the dollar is up more than 10% in 2022.
The recent selloff signals a sea change among investors, who until recently had flocked to the greenback, a traditional safe haven.
That shift gained momentum after the October CPI report earlier this month showed inflation cooled faster than expected, raising hopes the Fed would start easing the pace of rate hikes and dragging on the dollar's strength.
Meanwhile, Fed Chair Jerome Powell is scheduled to speak Wednesday afternoon, which could provide further clues for the December 13-14 policy meeting.
The Fed is widely expected to raise rates by 50 basis points next month, after four consecutive hikes of 75 basis points.