0854 GMT - Federal Reserve Chair Kevin Warsh's approach to monetary policy could prove detrimental to the dollar in the medium to long term, Commerzbank's Antje Praefcke says in a note. Warsh hinted last week that the market will do the work for him by pricing in higher long-term interest rates, she says. This suggests financing conditions will tighten without having to raise rates, dampening inflation. However, this is a "dangerous tactic" as a central bank's credibility depends on how decisively it acts against price risks, she says. If inflation exceeds the target for five years and a rate rise fails to materialize, the market will punish the currency, she says. The DXY dollar index rises 0.1% to 100.014.
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