Dollar Strengthens to One-Month High as Fed Rate Cut Expectations Stall

Reported 6 months ago

The US dollar has reached its highest level in a month, with a Bloomberg gauge showing its longest weekly winning streak since February. Expectations of a near-term Federal Reserve rate cut have diminished as the US economy remains strong, leading to the dollar benchmark rising nearly 0.8%. The swaps market now predicts the first rate cut by the Fed will not happen before December, with economists at Citigroup and JPMorgan revising their expectations. The dollar's strength has surprised some investors, prompting them to buy back the US currency.

Source: YAHOO

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