Dollar Steady at High Levels, Investors Await FOMC Minutes
The US dollar index (DXY) held steady at 99.4 on Wednesday (May 20), near its high level last seen in early April. Support came from market concerns about high inflation and persistently high interest rates.
The Strait of Hormuz remains nearly closed, keeping oil prices around 50% higher than pre-war levels, adding to ongoing inflationary pressures. These rising energy costs are expected to continue to depress consumer prices, forcing the central bank to maintain a tight monetary policy or even resume interest rate hikes.
The market still expects the Federal Reserve to keep the federal funds rate unchanged for the remainder of the year, although the market probability of a December rate hike is now around 50%.
Investors are currently awaiting the release of today's FOMC minutes for further insight into policymakers' views on inflation and interest rates.
The dollar remained relatively stable against other major currencies, reflecting investors' defensive stance amid geopolitical uncertainty and energy price pressures. (Arl)*
Source: Newsmaker.id
