Dollar dips as traders wait on Fed; Aussie gains
TLT•The dollar index fell 0.14% to 101.65 as traders awaited next week's Federal Reserve meeting, while the Australian dollar rose 0.41% to $0.7031 after an RBA deputy governor said the inflation outlook looked materially worse.
1. Dollar awaits Fed outlook
The dollar index dipped as traders weighed oil-driven inflation risks and awaited next week's Federal Reserve meeting. Fed funds traders saw only a small chance of a rate hike next week, with the next increase expected in December.
2. Aussie gains on inflation view
The Australian dollar gained after Reserve Bank of Australia Deputy Governor Andrew Hauser said the inflation outlook looked "materially worse." The Aussie rose 0.41% against the greenback to $0.7031.
3. Euro faces French strains
The euro was weighed down by protests in France and a worsening fiscal outlook, as French 10-year borrowing costs reached 24-year highs. Sterling rose 0.16% to $1.34 after UK inflation rose more than expected, strengthening the case for a Bank of England rate increase in November.
