Dollar Rises 0.5% for Fifth Day as Fed Hike Odds Jump to 48.4%
Updated
Updated · CNBC · May 15
Dollar Rises 0.5% for Fifth Day as Fed Hike Odds Jump to 48.4%
5 articles · Updated · CNBC · May 15
The dollar index climbed to 99.28, extending its winning streak to five sessions and putting it up about 1.5% for the week, its biggest weekly rise in two months.
Treasury yields drove the move higher as inflation fears intensified: the 10-year yield hit 4.581%, a one-year high, while markets lifted the chance of a December Fed hike to 48.4% from 14.3% a week earlier.
Oil added to that pressure after the Iran war kept the Strait of Hormuz largely shuttered and fresh comments from Donald Trump and Iran's foreign minister hurt hopes for a deal; WTI rose 3.07% to $104.28 and Brent 2.72% to $108.60.
The euro fell 0.3% to $1.1622 and was down about 1.4% for the week, while the dollar also gained 0.2% against the yen to 158.71.
Fed officials have stressed containing inflation, though New York Fed President John Williams said policy is in a 'good place,' underscoring a gap between market pricing and some policymakers' current stance.
As war-fueled inflation soars, will the new Fed chair risk a global recession to defend the dollar's strength?
Beyond the oil shock, the Hormuz closure is crippling food and tech supply chains. Is a global manufacturing crisis next?