Dollar at 2-month highs as Fed outlook 'dominant'
LONDON: The dollar rose to its strongest level in two months on Wednesday on prospects of interest rate hikes in the near term, although easing oil prices could alter the global inflation and monetary policy outlook.
The US dollar reached its strongest level in two months on Wednesday, buoyed by expectations of forthcoming interest rate hikes. The euro and British pound both dropped against the dollar, with the euro declining to a low not seen since late July and the pound falling 0.3 percent. The dollar index, which gauges the US currency against six others, rose 0.24 percent to 100.79.
The recent series of rate increases and hawkish statements from key central banks have dominated currency markets, with investors anticipating more rate hikes if inflation does not subside quickly. Strategist Francesco Pesole noted the Fed story and hawkish comments are keeping the dollar in demand. While oil prices have cooled from recent peaks, refined product costs remain elevated, and the US dollar's strength could be influenced by these factors.
Written by urgent.news from New Straits Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
