(Source: Bloomberg) – The dollar slumped the most in one month as upheaval in China’s stock and currency markets weighed on the outlook for higher interest rates in the U.S.

The greenback weakened to its lowest level in almost a year versus the yen after a 7 percent rout in China’s equity markets curtailed trading for the second time in four days. China’s foreign-exchange reserves slid more than forecast in December, capping their first-ever annual decline, prompting speculation that authorities are selling dollars to prop up the currency. Shorter-term U.S. debt yields declined and futures contracts show a 43 percent probability of a U.S. interest-rate rise by April, down from 56 percent on Dec. 31.

Read more from Bloomberg

Erik Sandstrom
LoanSafe's Mortgage Expert
I'm a Senior Loan Officer and LoanSafe mortgage expert. If you need a live rate quote, or need help getting a new mortgage, please call me direct anytime at 619-379-8999.