U.S. dollar rises, but off near two-year peak amid hawkish Fed signals
Shafaq News / The U.S. dollar climbed to nearly two-year highs on Thursday, as investors digested hawkish signals from the Federal Reserve, but wondered whether the currency's value already reflected further tightening moves.
The dollar index hit 99.823 on Thursday, the highest since late May 2020. It was last up 0.2% at 99.810.
"With traders pricing in more than 225 basis points of interest rate hikes over the rest of this year, there's certainly more risk of the Fed failing to meet expectations than exceed them," said Matthew Weller, global head of research at FOREX.com and City Index.
St. Louis Fed President James Bullard, a voter this year on the Federal Open Market Committee and a known hawk, continued to sound the alarm on inflation on Thursday.
He said the Fed remains behind in its fight against inflation despite increases in mortgage rates and government bond yields that have raced ahead of actual changes in the central bank's target federal funds rate.
Bullard's comments, however, had little impact on the dollar.
Chicago Fed President Charles Evans and Atlanta Fed President Raphael Bostic, neither of whom are voters in 2022, on Thursday supported rate increases, but provided a somewhat dovish counterpoint.
Bullard's comments, however, had little impact on the dollar.
Chicago Fed President Charles Evans and Atlanta Fed President Raphael Bostic, neither of whom are voters in 2022, on Thursday supported rate increases, but provided a somewhat dovish counterpoint.
(Reuters)
