Dollar Lifted by External Factors After Cautious Tone from Fed's Warsh

Dow Jones10-29 18:29

1029 GMT - Federal Reserve Chairman Kevin Warsh sounded cautious about raising interest rates after Wednesday's decision to keep rates unchanged but external factors are helping the dollar, MUFG Bank's Lee Hardman says in a note. Warsh pushed back against expectations for more aggressive rate hikes by acknowledging the recent tightening in financial conditions and stronger productivity growth. This supports the case for the Fed to deliver only one further rate-rise, he says. "While the scaling back of Fed rate hike expectations will put a dampener on the dollar's upward momentum, it is still deriving support from negative developments overseas including higher energy prices and heightened fiscal and political risks in the euro-area." The DXY dollar index rises 0.1% to 102.259.

At the request of the copyright holder, you need to log in to view this content

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment