Economics

Dollar Rises to Seven-Week High as Traders Warm to Fed Repricing

  • Greenback rises versus emerging markets, most of G-10 peers
  • Odds of June Fed rate move tripled since May 16, futures show

September Fed Rate Hike Odds Jump to Nearly Fifty Percent

Lock
This article is for subscribers only.

A gauge of the dollar strength reached a seven-week high as comments from Federal Reserve officials prompted currency traders to boost their expectations for monetary tightening.

The greenback rose against most of its Group-of-10 peers before Wednesday’s release of minutes from the Federal Open Market Committee’s April meeting. Emerging-market currencies slumped on the prospect of higher U.S. interest rates, with South Africa’s rand, the Brazilian real and the Russian ruble pacing declines.