The dollar headed for its steepest three-week slide in more than four years as an increasingly cautious Federal Reserve spurred analysts and investors to reassess forecasts for the greenback, Bloomberg reported yesterday. A Bloomberg index tracking the U.S. currency against 10 major peers climbed from an eight-month low reached Friday, two days after Fed officials unexpectedly cut projections for interest-rate increases to two this year from the four they estimated in December. Macquarie Bank Ltd. and Morgan Stanley, two of the world’s top 10 currency forecasters, are highlighting the risk of more dollar weakness. The Bloomberg Dollar Spot Index rose 0.2 percent to 1,185.52 as of 6:28 a.m. in New York, having fallen earlier to 1,180.83, the lowest since June 30. It has dropped 3.7 percent since Feb. 26, poised for the biggest three-week slump since October 2011. The greenback has depreciated at least 0.4 percent against all of its Group-of-10 peers since March 11.
