Continued Dollar Strength Depends on Further Fed Rate Rise Signals
Dow Jones09-22 18:31
1031 GMT - Further signals about additional U.S. interest rate rises from Federal Reserve officials are likely needed in coming weeks for the dollar to defend recent gains, Commerzbank's Antje Praefcke says in a note. Restrictive words, ideally delivered in unison by all Fed members on a regular basis, are key to avoid raising doubts about the Fed's credibility, she says. Given little economic data in the near term, such communication is crucial. "Since the market has already priced in significant interest rate hikes (75 basis points till July 2027), these expectations must be kept running in order to avoid losses in the dollar." The DXY dollar index falls 0.1% to 100.374 after earlier reaching a seven-week high of 100.667.
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