Dollar Back on the Rise
The dollar index strengthened to 101.3 on Wednesday, returning to levels not seen since April 2025, as oil prices resumed their climb and concerns over inflation and tighter monetary policy re-emerged. Investors are also awaiting the release of the FOMC minutes later in the day for further details and insights into the Fed’s policy outlook following last month’s 25bps increase in the federal funds rate, the first hike in borrowing costs since 2023. Markets are currently pricing in nearly a 78% chance that the central bank will leave rates unchanged this month, while the probability of a 25bps rate hike in December stands at around 69%. The greenback strengthened broadly, gaining the most against the euro, as political and fiscal concerns in Spain and France weighed on the common currency.
3 on Wednesday, returning to levels not seen since April 2025, as oil prices resumed their climb and concerns over inflation and tighter monetary policy re-emerged. Investors are also awaiting the release of the FOMC minutes later in the day for further details and insights into the Fed’s policy outlook following last month’s 25bps increase in the federal funds rate, the first hike in borrowing costs since 2023. Markets are currently pricing in nearly a 78% chance that the central bank will leave rates unchanged this month, while the probability of a 25bps rate hike in December stands at around 69%.
The greenback strengthened broadly, gaining the most against the euro, as political and fiscal concerns in Spain and France weighed on the common currency.