FOREX-Dollar hits 11-week high on bets of December Fed rate hike

LONDON The dollar hit an 11-week high on Tuesday as investors upped their bets on the Federal Reserve raising U.S. interest rates before the end of the year, and as doubts grew over Donald Trump’s ability to win the U.S. presidency.

In Sweden by contrast, market players are betting the central bank may have to ease policy further – a view that was strengthened by a weak inflation print on Tuesday, sending the Swedish crown to a 6-1/2-year low against the euro EURSEK=D4.

As U.S. Treasury yields rallied to their highest levels since early June US10YT=TWEB, the dollar index – which measures the greenback against six major peers – jumped 0.6 percent to 97.475 .DXY, its highest since late July.

Traders have priced in a 70 percent chance the Fed will hike rates at its Dec. 13-14 meeting, up from 66 percent on Friday, according to CME Group’s FedWatch tool.

Some analysts said widening…

Read the full article from the Source…

Leave a Reply

Your email address will not be published. Required fields are marked *