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Dollar set for sparkling week as interest rate hike expectations surge

Federal Reserve chair Jerome Powell unleashed bets on five or more hikes this year after he left the door open to raising rates faster than in previous cycles

Photo: Paul Yeung/Bloomberg
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Photo: Paul Yeung/Bloomberg

Reuters
The dollar was headed for its best week in seven months on Friday after breaking through key levels against the euro as traders priced in a year of aggressive U.S. interest rate hikes.

Federal Reserve chair Jerome Powell unleashed bets on five or more hikes this year after he left the door open on Wednesday to raising rates faster than in previous cycles.

Data showing the best annual U.S. growth in nearly four decades didn't hurt either.

Overnight the euro fell almost 0.9% to a 20-month low of $1.1131, the yen fell 0.6% and the Australian and New Zealand dollars

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

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First Published: Jan 28 2022 | 8:25 AM IST

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