Dollar falls for sixth day as Fed outlook shifts

LONDON/SINGAPORE, March 23 (Reuters) – The dollar headed for its longest losing streak in 2-1/2 years on Thursday after the U.S. Federal Reserve sounded close to calling time on interest rate hikes, which investors think are more or less over.

Policy announcements from the Bank of England, Swiss National Bank and Norges Bank are set to take focus in Europe.

The Fed raised its benchmark funds rate by 25 basis points, as expected, but dropped language about “ongoing increases” being needed in favour of “some additional” rises, as it watches how wobbling confidence in banks affects the economy.

Futures imply around a 40% chance of one more quarter-point hike, in contrast to Europe where markets see just under 50 bps of further tightening.

The gap has sent the euro surging to a seven-week high of $1.0930, having also risen for six straight sessions.

Sterling also hovered near a seven-week high after data showed…

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