Forex
Home›Forex›Major Pairs›Dollar posts best month since March after Fed inflatio…
Dollar posts best month since March after Fed inflation focus
The Bloomberg Dollar Spot Index rose nearly 2% in September as long-dated Treasury yields climbed to multi-decade highs.
The dollar ended September with its best monthly performance since March, supported by renewed Federal Reserve focus on taming inflation that lifted interest-rate expectations and pushed US bond yields higher, according to LiveMint Markets citing Bloomberg.
The Bloomberg Dollar Spot Index rose nearly 2% in September, edging out its prior gain in June, and held higher on Wednesday even as the Fed’s preferred inflation gauge, the personal consumption expenditures price index, came in below expectations.
In a sign of shifting expectations for the policy path, traders reduced the odds of an October rate hike after Wednesday’s data while fully pricing in a December increase, with long-dated Treasury yields climbing to multi-decade highs.
A foreign-exchange trader at Monex Inc., Andrew Hazlett, said softer-than-expected PCE data weighed on the dollar and suggested an October hike was unlikely, while a December move remained possible.