Goldman Says Dollar Surge Far From Over as Traders Misprice Fed
- Bank says market is underestimating path of rate increases
- Deutsche Bank sees higher interest rates, greenback gains
Is the Fed Trying to Prime Market for a Hike?
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Goldman Sachs Group Inc. is holding fast to its bullish-dollar call, undeterred by plunging expectations for a Federal Reserve interest-rate increase.
A gauge of the U.S. currency was near the strongest level since August as U.S. yield levels bolstered the greenback’s allure versus major peers even as futures showed reduced odds of a Fed rate hike next week. The dollar advanced against the yen after some Bank of Japan officials were reported to have said they still favor stepping up purchases of government bonds.