Dollar Climbs to Strongest Since 2003 on Fed Path; Bonds Drop
- ‘It feels like going long dollar is free money, no one loses’
- Asian index futures diverge as yen drives haven-asset retreat
Maher: Euro Decline to Push Market to Think Parity
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The dollar rallied to its strongest level since 2003 against the euro, while gold plunged as the prospect of a steeper path for U.S. interest rates going forward filtered through markets. U.S. stocks rebounded from their worst day in two months as havens retreated.
Financial shares drove gains in major American equity benchmarks, while interest rate-sensitive stocks slipped after 10-year Treasury yields reached their highest level in more than two years. The greenback extended its advance against major and emerging-market peers after the Federal Reserve’s first, and last, rate hike of 2016 came with an increase in the number of increases expected next year. Gold tumbled to a 10-month low.