Dollar Extends 2-Day Rally, Lifting Bloomberg Spot Index 1% as Fed Signals Rate Hike
Updated
Updated · Bloomberg · Jun 18
Dollar Extends 2-Day Rally, Lifting Bloomberg Spot Index 1% as Fed Signals Rate Hike
3 articles · Updated · Bloomberg · Jun 18
Summary
The dollar climbed for a second straight day, leaving the Bloomberg Dollar Spot Index about 1% above its level before Wednesday’s Federal Reserve meeting.
Fed Chair Kevin Warsh’s emphasis on fighting inflation drove traders to increase bets that the central bank could start raising rates as soon as late next month.
Updated Fed forecasts reinforced that shift, showing many policymakers expect at least one rate increase before the end of the year.
That repricing pushed the dollar back toward its late-March peak, underscoring how quickly rate expectations are reshaping currency markets.