Dollar Gains Second Day as Fed Rate Rise Odds Jump; Kiwi Slumps
- Chances of Fed increase this year climb to most since June
- New Zealand dollar declines for seventh day as Aussie weakens
The dollar advanced for a second day as traders increased bets the Federal Reserve will raise interest rates this year and as a jump in oil prices Monday helped push up Treasury yields.
The U.S. currency strengthened all of its 16 major counterparts after the probability the Fed will tighten this year climbed to 68 percent, the most since June. The greenback also rose as the second U.S. presidential debate Sunday added to speculation Democratic nominee Hillary Clinton will prevail over Republican Party candidate Donald Trump. The New Zealand dollar dropped for a seventh day, the longest losing streak since July 2015, after Reserve Bank of New Zealand Assistant Governor John McDermott said the central bank still expects to cut interest rates to revive inflation.