Dollar Strength Could Continue on Fed Rate-Rise Prospects

Dow Jones
4 hours ago

1034 GMT - The dollar is likely to remain firm for some time as decent U.S. growth and above-target inflation support expectations that the Federal Reserve will raise interest rates further, ING's Chris Turner says in a note. "Barring a big fall in energy prices this week, which seems unlikely, Wednesday's release of September [U.S. consumer price inflation data] looks set to keep those Fed tightening expectations broadly intact," he says. There are upside risks to the consensus forecast of 0.2% month-on-month core inflation, he says. It might take until next spring for tightening expectations to drop out of money markets, he says. The DXY dollar index rises 0.2% to 102.376 and ING expects it to reach 102.850 this week.

 

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