Dollar Holds Near Seven-Month High on Policy Divergence Outlook
- Three rate hikes by end-2017 may be appropriate: Fed’s Evans
- Canada’s dollar drops after Poloz clarifies earlier remarks
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The dollar was close to its highest level since March amid bets the Federal Reserve will raise interest rates this year while other major central banks maintain monetary easing.
The greenback has risen against all of its Group-of-10 counterparts this month as the market-based odds of a U.S. hike by December climbed more than 10 percentage points to 71 percent. A gauge of the currency completed a three-day gain Monday after Chicago Fed President Charles Evans said it may be appropriate for policy makers to raise rates three times by the end of 2017 and a U.S. manufacturing gauge rose to the highest in a year.