The dollar dropped for a second day after Federal Reserve policy makers shied away from reaffirming investors’ expectation of an interest-rate increase next month.

Currency investors, who’ve been accumulating bets on a stronger dollar this month, were disappointed when New York Fed President William C. Dudley said policy should be tightened only gradually after interest rates are increased for the first time since 2006. Commodities currencies weakened, including the Canadian dollar and Norway’s krone, on speculation increasing energy supplies will extend a global crude-oil rout.

The Bloomberg Dollar Spot Index, which tracks the greenback versus 10 major counterparts, fell 0.2 percent to 1,226.80 as of 3:03 p.m. New York time. The gauge has rallied 1.4 percent this month and reached the strongest level Tuesday in more than a decade.

Source: Bloomberg