US Dollar Holds High
The US dollar index held around 101.4 on Wednesday (June 24th). This position is the highest level in more than a year, driven by expectations that the Federal Reserve is still likely to raise interest rates this year.
Support for the dollar also came from the sell-off in technology stocks on Wall Street. When the stock market is depressed, investors tend to seek safer assets, increasing demand for the US dollar. In its latest policy meeting, the Fed maintained interest rates, but signals from officials indicate support for further tightening is growing.
The market now estimates a roughly 70% chance that the Fed will raise interest rates in September, up sharply from 29.1% the previous week. Investors are also awaiting this week's PCE inflation report for clues on the direction of the next monetary policy. Meanwhile, progress in US-Iran peace negotiations has helped ease pressure on energy markets, especially after traffic in the Strait of Hormuz increased and inflation concerns began to ease. (asd)
Source: Newmaker.id
