Dollar Jumps 0.3% as Oil Tops $100 and Traders Price September Fed Hike
Updated
Updated · Bloomberg · Jul 27
Dollar Jumps 0.3% as Oil Tops $100 and Traders Price September Fed Hike
3 articles · Updated · Bloomberg · Jul 27
Summary
The Bloomberg Dollar Spot Index rose 0.3% Thursday, putting it on track for its best week in a month as the greenback strengthened broadly.
Oil climbing above $100 a barrel after the intensifying Iran war raised fears of supply disruptions, reinforcing bets that US rates will stay higher for longer.
Traders now fully price a Federal Reserve rate hike in September, with some also seeing a chance the central bank could move as early as next week.
The move shows how Middle East conflict is feeding through energy markets into currency trading by shifting expectations for the Fed's policy path.