Dollar Bulls are Vulnerable as Currency's Strength May Cap Rates
- Greenback climbs past levels from March when Fed flagged rise
- Traders see almost 70% chance of Fed increase in December
Is a Strong Dollar Sustainable?
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Dollar bulls have reason to be wary of the currency’s Friday rally on stronger-than-forecast U.S. labor data.
The jobs report bolstered the case for a December interest-rate increase by the Federal Reserve and propelled a broad gauge of the greenback past this year’s previous high. Yet the last time the dollar was this strong, the central bank flagged it as a burden on exporters and a damper of inflation, driving the currency down by the most since 2009.