Dollar Strengthens, Risk Aversion Sentiment and Fed Policy Lead
The dollar index held above 100 on Wednesday, reaching its highest level since May, as demand for safe-haven currencies increased amid global market uncertainty. Stocks and other risk assets came under pressure due to concerns about AI stock's high valuations, while warnings from major Wall Street bank CEOs about a potential market downturn further dampened risk appetite. The dollar also drew support from speculation that the Federal Reserve would likely keep interest rates unchanged in December, after Fed officials signaled caution about further cuts.
Although the ongoing US government shutdown has exacerbated economic uncertainty by delaying key data releases, investors remain eagerly awaiting the ADP private employment report due later today. The market now sees a 69% chance of a 25 bps rate cut in December, down significantly from around 90% following last week's FOMC decision. (az)
Source: Newsmaker.id
