US Dollar Hits 7-Month High on Fed Rate Hike Bets, Two 25bp Increases Expected by Early 2027

US4.09%
According to Guru Club, the US dollar rose to its highest level since November on Tuesday (June 24), as traders increased bets on Federal Reserve rate hikes. Market participants now expect the US to implement nearly two rate increases of 25 basis points by early 2027, with a potential rate hike cycle possibly beginning in September, according to Mizuho International strategist Jordan Rochester. The stronger dollar contrasts with other major currencies: the euro fell to its lowest level in a year following European Central Bank President Christine Lagarde's recent comments that reduced rate hike expectations for the region, while the yen remained under pressure as traders remained cautious about possible Japanese yen intervention.
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