Dollar Rises as Fed Could Pause After Cutting Rates Next Week
By
Jessica Fleetham, Dow Jones Newswires
The dollar rose to its highest in more than two weeks against a basket of currencies. This came after stronger-than-expected U.S. producer price data on Thursday dampened prospects of U.S. interest-rate cuts, UniCredit Research analysts said in a note.
The Federal Reserve is expected to cut interest rates next week but further reductions after that look likely to be limited. By contrast, the European Central Bank is expected to continue cutting rates after reducing them Thursday.
“The dollar is strengthening across the board, as reflected in the U.S. dollar index (DXY) rising back above 107 amid growing market confidence that the Fed might take a pause after cutting rates next week,” the analysts said. The DXY index rose to 107.186.
