Dollar Index Heads for 0.2% Weekly Drop as 10% July Fed Hike Odds Temper Support
Updated
Updated · CNBC · Jul 17
Dollar Index Heads for 0.2% Weekly Drop as 10% July Fed Hike Odds Temper Support
3 articles · Updated · CNBC · Jul 17
Summary
The dollar index held at 100.75 on Friday and was set for a 0.2% weekly decline after softer June U.S. inflation pushed traders to scale back near-term Federal Reserve tightening bets.
July Fed hike odds fell to 10% from 25% a week earlier, while markets priced in 28 basis points of hikes by December even as economists expect rates to stay unchanged later this month.
Safe-haven demand still cushioned the greenback as U.S.-Iran fighting intensified, Strait of Hormuz traffic faced disruption and oil climbed toward one-month highs, helping the dollar recover part of this week's losses.
The euro was flat at $1.1437 and headed for a 0.2% weekly gain, while sterling slipped 0.23% to $1.3456 but remained on track for a third straight weekly rise.
The yen stayed near 162 per dollar after touching a 40-year low of 162.84 earlier this month, with Tokyo again warning it was ready to intervene.