Dollar Pulls Back as Treasury Rally Cools Rate-Hike Bets
The dollar retreated from an 18-month high as bond yields fell and cautious Fed remarks tempered expectations for an October rate increase.
Key takeaways
- The dollar index fell 0.44% to 102.00 on Thursday, according to CNA.
- CNA reported a 72% chance of the Fed holding rates at its October meeting.
- The euro and sterling strengthened as the dollar retreated.
The dollar index fell 0.44% to 102.00 on Thursday, retreating from an 18-month high, according to CNA. Treasury prices rose as investors weighed cautious Federal Reserve remarks and renewed concerns about debt at AI companies.
CNA reported that traders saw a 72% chance of the Fed leaving rates unchanged at its Oct. 27-28 meeting, up from 53% a month earlier. The odds of a hike had risen after strong inflation data, but eased after officials said the Fed could wait for more clarity.
The euro rose 0.48% to $1.1210 and sterling gained 0.45% to $1.3251, CNA reported. The Australian dollar fell 0.88% to $0.6911 after Australian employment unexpectedly declined in September.
This article was produced with the help of AI technology. Based on reporting by the outlets listed above.
