Dollar Hits 2-Month High as 172,000 U.S. Jobs Lift Fed Hike Odds Above 70%
Updated
Updated · CNBC · Jun 8
Dollar Hits 2-Month High as 172,000 U.S. Jobs Lift Fed Hike Odds Above 70%
3 articles · Updated · CNBC · Jun 8
Summary
More than 70% odds of a December Fed rate hike were priced in after U.S. nonfarm payrolls rose 172,000 last month, far above forecasts and reinforcing expectations of tighter policy.
The dollar held near a two-month peak on Monday, pushing the euro down to $1.1507, sterling to $1.33165, and the Australian and New Zealand dollars to two-month lows.
The stronger greenback drove the yen to 160.29 per dollar, wiping out gains made after Tokyo's 11.7 trillion yen intervention just over a month ago and putting it back near intervention territory.
Energy-price pressure tied to the Iran war is adding to inflation fears, while sources told Reuters the Bank of Japan still expects to raise rates this month unless Middle East tensions sharply worsen.