The dollar is on course for its longest stretch without gains against a basket of peers in nine months, after investors turned optimistic about global growth prospects in April and pushed the exchange rate lower for four consecutive weeks.

The declines followed a robust performance in March, when the US’s forceful economic recovery stoked expectations that rising inflation could push the Federal Reserve to scale back its supportive policies, lifting bond yields and pulling the dollar higher against most other major currencies.

But in a sign that investors think the global economic recovery may not be far behind, the dollar index shed 2.7 per cent of its value in a month to trade at $90.98 while currencies with strong ties to commodity prices bounced. The euro climbed 3 per cent to trade at $1.20 and the Brazilian real emerged as the best performing currency of the month.

Despite the eurozone plunging into a…

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