(Bloomberg) — Hedge funds are becoming more bearish on the dollar, underscoring speculation that the Federal Reserve will slow the pace of its rate hikes.

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Bets against the greenback have grown to 30,457 contracts over the past week, the most since August 2021, according to Commodity Futures Trading Commission data for eight currency pairs. Swap contracts show investors now expect the Fed funds’ effective interest rate to rise to below 5% from 5.06% on Friday data…