The dollar is on pace for the first monthly decline since August as investors bet the Federal Reserve will wait until at least April to raise interest rates again after last week’s liftoff from near zero.

Hedge funds reduced futures bets for a second week that the dollar will advance against the 19-nation currency, in the last positioning data available before the U.S. central bank raised its target for the first time in almost a decade on Dec. 16.

The dollar is up against almost all major currencies this year as investors prepared for Fed liftoff while other central banks added stimulus. Yet U.S. policy makers have emphasized that they’ll stick to a gradual pace of increases to assess the economy’s response to higher borrowing costs and as commodity prices tumble.

The U.S. currency fell 0.4 percent to $1.0915 per euro at 5 p.m. New York time, extending this month’s losses to 3.3 percent. The dollar’s depreciated 1.6 percent in December to 121.19 yen.

Source: Bloomberg