Trending
US Dollar
Source: Newsmaker.id
The US dollar strengthened on Tuesday (Nov 10) after Federal Reserve Governor Christopher Waller expressed his support for a 25-basis-point interest rate hike in December. This statement immediately shifted market expectations regarding the Federal Reserve's monetary policy.
The probability of a 25-basis-point rate hike in December has now surged to 98%, up from approximately 84% prior to Waller’s remarks. The market has grown increasingly confident that the Fed will continue to tighten policy, following recent US economic data that pointed to a relatively solid economic landscape.
Waller also signaled that the rate hike could be larger if inflation proves to be significantly higher than anticipated. He suggested that more aggressive action might be necessary if inflation data fails to show improvement, shifting investor focus toward upcoming US consumer price figures.
Heightened interest rate expectations have also pushed up US Treasury yields. The 10-year Treasury yield rose by 2 basis points to 4.882%, while the US Dollar Index (DXY) climbed 0.1% to 101.703. Rising yields have made dollar-denominated assets more attractive to investors.
Newsmaker Analysis: The current movement of the dollar indicates that expectations regarding Federal Reserve policy have become the primary catalyst. If upcoming inflation data continues to show persistent price pressures, the likelihood of tighter policy could increase, potentially providing further support for the dollar. Conversely, cooling inflation could dampen expectations for rate hikes and limit the dollar's gains. (arl)
Source: Newsmaker.id