Business
Dollar Hovers Near 2-Week High After Fed Minutes
The dollar was trading near a two-week high as the minutes of the Federal Reserve’s meeting last month showed several policymakers were open to potentially raising interest rates if inflation remains elevated.
“The mere suggestion that the key interest rate could rise again is obviously making some market participants sit up and take notice,” Commerzbank’s Antje Praefcke said in a note.
A rate cut in March appears unlikely and the market isn’t even fully pricing in two rate cuts this year, she said. Friday’s U.S. PCE inflation and fourth-quarter U.S. economic growth data could boost the dollar further if they exceed expectations, she said.