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2017.06.2823:27:00UTC+00Dollar Drops on Hawkish Comments from Major Central Banks

The dollar tumbled to its lows for the year on Thursday as a barrage of hawkish remarks from major central banks indicated that the era of easy money could be coming to an end. The greenback wavered near one-year lows versus the euro and fell versus the pound in Asian trading on Thursday.

European Central Bank Chief Mario Draghi said that stimulus might be moderated in order for it to not become more accommodative as the economy recovers. ECB sources attempted to debunk such talks but could not stop the euro from reaching a one-year peak versus the U.S. dollar.

In Britain, Bank of England Governor Mark Carney said that a hike is likely needed as the economy accelerates to full capacity.

Two top policymakers from the Bank of Canada implied that they might tighten as early as July.

The euro jumped to a 16-month high against the yen as investors doubt whether the Bank of Japan could finally start winding back its stimulus for a long time to come.

The Canadian dollar stood C$1.3027, enjoying its largest daily gain in three months. The sterling rebounded to $1.2964.

The dollar versus a basket of major currencies tumbled to its weakest since October at 95.801.

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