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US Dollar reaches an 8-week high as expectations for Federal Reserve rate hikes rise
PANews reported on September 23 that, as markets bet the Federal Reserve will raise rates further, the US Dollar against a basket of currencies rose to its highest level since late July. The Federal Reserve raised rates by 25 basis points last week and indicated that it would raise rates at least once more this year. As market expectations for rate hikes continue to increase, the US Dollar has received support. During the European afternoon trading session, renewed increases in energy prices also supported the US Dollar, with Brent crude oil prices rising back above US$100 per barrel. Due to the US Dollar's safe-haven characteristics and the United States' status as a net oil exporter, rising energy prices generally benefit the US Dollar. However, as interest-rate expectations have become the dominant factor, the US Dollar has become less sensitive to oil-price fluctuations. “The medium- to long-term US Dollar strength trend we previously forecast may finally be beginning to emerge,” Standard Chartered strategist Steve Englander said in a report.
Source: https://www.panewslab.com/zh/articles/01a0ce9c-97e6-7278-b6a3-5fd51d2e99f3