The Buck Stops Listening Until the Fed Walks the Talk on Rates
- Investors are ‘comfortable’ with U.S. hiking: IG’s Weston
- Greenback pulling back even as March rate-rise bets mount
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By rights, this week should have been a bullish one for the dollar.
Federal Reserve Chair Janet Yellen’s more hawkish tone bumped up bets on a March interest-rate hike, and the steeper-than-forecast increase in U.S. consumer prices -- they rose the most in almost four years in January -- signaled inflation in the world’s largest economy is right where the central bank wants it. Despite all this, the greenback is on track for losses this week versus the Korean won to the Australian dollar and is flat against a basket of its 10 most-traded peers.