The dollar rose against major peers on prospects for further Federal Reserve tightening, after the central bank unanimously raised rates 25 basis points last week and signaled at least one more increase before year-end. The ICE U.S. Dollar Index stood at 100.33, up 0.10%.
The dollar climbed as it continued to draw support from expectations for further interest rate rises by the Federal Reserve.
Last week, the Fed voted unanimously to raise rates by 25 basis points, and officials penciled in at least one more increase by year-end. The dollar index DXY traded at 100.33, up 0.10% as of the latest update.
According to Commerzbank's Thu Lan Nguyen, further U.S. rate hikes had largely already been priced in, and longer-term inflation expectations had stayed stable near the Fed's target. Even so, she noted, markets apparently retained some doubt over whether the central bank would actually raise rates quickly and decisively enough.
Source: Barrons.com (snippet-based)
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