US: Warsh's Fed Strategy May Weaken Dollar

WARSH'S FED STRATEGY COULD WEAKEN THE DOLLAR Kevin Warsh's approach to monetary policy could hurt the U.S. dollar over time, according to Commerzbank.

Warsh suggested markets can tighten financial conditions through higher long-term bond yields, reducing the need for Fed rate hikes.

Commerzbank warns this risks damaging the Fed's credibility if inflation stays above target without decisive action.

If investors lose confidence in the Fed's commitment to fighting inflation, the dollar could come under pressure.

The DXY dollar index was last up 0.1% at 100.014.