Dollar Dominates Amid Rate Hike Speculation
Traders priced a 36.3% chance of a Fed hike this week, while lower oil prices eased inflation worries, CME FedWatch data showed.
- On Tuesday, the U.S. dollar held at a one-month high as traders weighed a slim but lingering chance of a rate hike at the Federal Reserve's upcoming two-day policy meeting ending Wednesday, with the dollar index edging up 0.03% to 101.55.
- Major brokerages assess a real risk of a Fed rate hike this week, with expectations for at least 25 basis points rising to 36.3% from 16% one week prior, driven by oil price surges and heightened Middle East tensions.
- Chris Weston, head of research at Pepperstone, said the lack of meaningful buying at the front end of the Treasury curve has helped keep the U.S. dollar well supported; against the yen, the dollar gained 0.05% to 163.82 while sterling eased 0.02% to $1.3284.
- Markets have priced in an 81% probability of a September rate hike, while Matthew Ryan, head of market strategy at Ebury, noted the BOJ must strike a hawkish tone to prove credibility on inflation and currency support as investors await second-quarter GDP and core PCE data this week.
- A packed central bank week sees the Bank of England and Bank of Japan hold rates steady Thursday and Friday; Mahjabeen Zaman, head of FX research at ANZ Bank, warned a surprise Fed hike would likely propel the dollar to new highs against lower-yielding currencies like the yen and Swiss franc.
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US Fed meeting: Can the central bank delay rate hikes? How could a surprise hike impact Indian stock market?
As the US Fed gears up for its July policy decision, experts debate whether it will hold interest rates steady or surprise with a hike. With inflation concerns and rising energy prices, the implications for Indian markets could be significant.
The dollar abroad operates at the highest level in a month, amidst the increase in the bets of a possible high interest rate by the Federal Reserve (Fed) this week, in the face of uncertainties in the Middle East and concerns about inflation, despite recent losses in oil prices reflecting the pause in the United States' attacks on Iran. At around 7.50 a.m., the DXY index – which measures the relationship between the dollar and a basket of develo…
Dollar Dominates Amid Rate Hike Speculation
The U.S. dollar hit a one-month high due to speculation around a potential Federal Reserve rate hike. While oil prices dropped easing inflation concerns, Treasury yields remained stable. Market expectations suggest a 36.3% chance of a rate hike, influencing dollar strength, especially against yen and euro.
Dollar hits one-month high on lingering chances of Fed hike
By Satoshi Sugiyama TOKYO, July 28 (Reuters) - The U.S. dollar held at a one-month high on Tuesday as traders weighed a slim but lingering chance of a rate hike at the Federal Reserve's upcoming meeting, even as falling oil prices eased some concerns o...
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