Dollar Holds Near 2-Week High as 91.9% Fed Hike Odds Follow Hotter CPI
Updated
Updated · Reuters · Nov 11
Dollar Holds Near 2-Week High as 91.9% Fed Hike Odds Follow Hotter CPI
3 articles · Updated · Reuters · Nov 11
Summary
The dollar index held at 102.22 in early Asian trade after jumping 0.5% overnight, staying near its highest level since Oct. 28.
October US consumer prices rose more than expected, and hawkish Fed officials warned inflation risks remain, pushing traders to fully rule out a December pause.
Fed funds futures now show a 91.9% chance of a 25-basis-point hike on Dec. 9, up from 84% a day earlier, with a 9.1% chance of a larger 50-basis-point move.
US 10-year Treasury yields climbed 13.8 basis points to 4.996%, while the euro and sterling were flat and the yen held around 158.715 per dollar.
Markets are now debating not just one more hike but how restrictive US policy may ultimately become, a shift with broader implications for risk assets.