Dollar drops as volatility hits 8-month high

New York

THE dollar weakened for a second consecutive week for the first time since June as traders pushed out expectations for US interest-rate increases to the end of next year with global economic growth faltering.

A gauge of expectations for volatility reached an eight-month high as investors fretted about the prospects for global growth, US monetary policy and the spread of Ebola. The yen rallied against most major currencies and rose to the strongest against the dollar in more than five weeks as investors sought a refuge.