Dollar Hits Two-Week High as Fed Hike Nears Certainty
The dollar holds near 99.55 with a 93% probability of a Fed hike priced in, driven by oil spikes and yields near 5%. Meanwhile, the yen consolidates as speculators turn net long ahead of the BoJ's expected move, and the yuan remains stable near historic lows.
Analysts at BCA noted that limited further hawkishness suggests a flattening yield curve and capped dollar gains, while speculators have flipped to net long positions on the yen for the first time since February ahead of Friday's BoJ decision, according to GN markets/fx (en-US).
Source: cnbc.comFresh details from GN auto markets/forex highlight that risk appetite is dampened by a selloff in AI-related shares following industry calls for slower development. Additionally, the yen has retreated slightly from its seven-month high ahead of the Bank of Japan's expected rate hike on Friday, while the offshore yuan remains flat near three-year lows.
Source: The Economic TimesThe US dollar rose to 99.55 on a two-week high. Oil prices at $107 per barrel pushed 10-year Treasury yields near 5%. Markets price a 93% chance of a rate increase this week.
Source: Yahoo Finance
