Dollar Hits 18-Month High Before Pulling Back on Fed Expectations
The dollar briefly reached an 18-month high after stronger-than-expected U.S. inflation data revived expectations for a Fed rate hike later this month, then pulled back as investors returned to expecting the Fed to be patient.
The US dollar reached an 18-month high on Wednesday after inflation data came in stronger than expected, briefly reviving expectations of a Federal Reserve rate hike later this month. The currency subsequently retreated as investors returned to the view that the Fed would remain patient.