US Dollar Struggles as Traders Weigh Fed Rate Hike Expectations
· Business · LiveMint, Bloomberg, Economic Times
The US dollar traded on shaky ground on Monday as rising Middle East tensions and higher oil prices stoked global inflationary pressures, prompting markets to price in a 57% chance of a Federal Reserve rate hike this month. European and Japanese currencies advanced, with the euro holding near $1.1618 and the Japanese yen rising past 155.88 per dollar on hawkish bets for the Bank of Japan. Analysts note that upcoming US inflation data will determine whether the Federal Reserve tightens policy further or holds rates steady. Meanwhile, the European Central Bank is widely expected to lift its rate to 2.75%, driven by elevated energy costs.
Why it matters
Shifting monetary policy expectations across major central banks directly influence global currency valuations, import costs, and capital flows into emerging markets like India.
Read the original report — LiveMint
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