FOREX-Dollar near two-week high as Warsh boosts rate-hike bets; yen slips past 160
The U.S. dollar reached a two-week high following hawkish comments from Federal Reserve Chair Kevin Warsh regarding potential interest rate hikes. Meanwhile, the Japanese yen weakened past the 160-per-dollar threshold as investors await key U.S. economic data.
Why it matters
Fluctuations in the dollar and yen reflect global market reactions to U.S. monetary policy and geopolitical tensions affecting oil prices.
SHARE Key Takeaways AI Summary Analyzing article... The dollar held steady near a two-week high on Monday as markets ramped up bets on a rate hike after hawkish remarks by Federal Reserve Chair Kevin Warsh, while the yen slipped back through the closely watched 160-per-dollar level.
The U.S. central bank will "have work to do" if policymakers don't get the confidence they need that inflation is heading down to 2%, Federal Reserve Chairman Kevin Warsh said on Friday, in his clearest indication yet that further tightening may be needed to curb price pressure. The comments fuelled bets on a September rate hike. Markets raised the implied probability of a move next month to 57%, while yields on interest-rate-sensitive two-year U.S. Treasury notes rose to a more than one-month high of 4.33%.
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