0647 GMT - The dollar rises to an 18-day high against a basket of currencies as Iran war tensions persist and recent higher-than-expected prices data fuel speculation the Federal Reserve could pivot towards raising interest rates. The U.S. and Iran remain in a diplomatic stalemate and there are little signs of progress towards reopening the Strait of Hormuz, keeping oil prices elevated. Data on import prices on Thursday and wholesale prices on Wednesday were both higher than expected as energy prices jumped. The market is now pricing in a 60% chance of a 25 basis-point rate rise by year-end and fully pricing in a move by March 2026, LSEG data show. The DXY dollar index rises to a high of 99.202. (renae.dyer@wsj.com)
(END) Dow Jones Newswires
The market is fully pricing in a rate rise by March 2027, LSEG data show. "Dollar Rises as Market Bets on Fed Rate Rises -- Market Talk," at 0647 GMT, incorrectly said markets were fully pricing a rate rise by March 2026.
(END) Dow Jones Newswires
May 15, 2026 04:42 ET (08:42 GMT)
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