Dollar index rises for fourth straight session to 99.6
The dollar index rose for a fourth consecutive session to 99.6, its highest level in about two weeks, ahead of this week’s FOMC decision.
6 on Monday, its strongest level in about two weeks, as traders positioned for this week’s FOMC decision. Markets are pricing a nearly 89% chance that the Fed will raise rates by 25 basis points this week, which would be its first increase in borrowing costs since 2023. Policymakers are also due to publish updated economic forecasts, and traders are watching for clues on the future path of interest rates. Higher oil prices have added to inflation pressures, darkening the inflation outlook and reinforcing the case for more Fed tightening.
Warnings from leading technology CEOs about possible risks from AI also weighed on stocks and supported demand for the dollar. The greenback firmed across the board, with the biggest gains against the Japanese yen and the Australian dollar.