Dollar pauses for breath as Fed officials leave market pondering over rates path - SABC News - Breaking news, special reports, world, business, sport coverage of all South African current events. Africa's news leader.

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The dollar hovered below a near two-decade high in Asian trading on Friday, having slipped overnight after two Federal Reserve policymakers said they favoured a smaller rate rise than the 100 basis-points that investors were betting on.

The dollar index, which measures the currency versus six counterparts, edged 0.07% higher to 108.65, after reaching and then falling back from the highest since September 2002 at 109.29 on Thursday.

Fed funds futures currently indicate a 31% chance of a 100 basis-point increase, down from around 70% before the comments. “The FOMC will have to remain hawkish both at the July meeting and beyond, solidifying US dollar yield support.” The euro zone is struggling with a worsening energy crisis as Russia shut down a gas pipeline for regular week-long maintenance, leaving markets jittery about whether it will comeback online, with Russia saying it will depend on demand and sanctions.

 

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