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Dollar stays near year-to-date highs as Fed rate-hike expectations fade

MUFG said softer US data and FOMC minutes suggest there is no urgency for another hike this month.

Reported · Written up by our desk · Major Pairs

MUFG analyst Lee Hardman said the US Dollar index is holding near year-to-date highs even as US rate markets have pared back expectations for further Federal Reserve tightening, according to FXStreet.

Hardman pointed to softer US data and the FOMC minutes as signals there is no urgency to hike again this month, while saying fiscal and political risks in the euro area are continuing to support the US Dollar against major peers.

FXStreet also noted that broader risk sentiment remains sensitive to geopolitical developments, with the report that the Pentagon ordered readiness for potential strikes against Iran, helping keep a geopolitical risk premium in play.

Latest closeDollar index 102.19 ▲0.3%

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