Dollar gains as oil climbs and investors focus on the Fed
TLT•The dollar index rose 0.3% to 102.13 as oil prices climbed and investors awaited Federal Reserve minutes. October rate-hike odds fell to 21.6% from about 51% a week earlier, while December hike odds stood at 68.6%.
1. Dollar and oil
The US dollar edged higher on Wednesday, buoyed by rising oil prices, as investors awaited Federal Reserve meeting minutes and policymaker remarks. Brent futures rose above $100 a barrel amid concerns about supply disruptions from a storm threatening US oil-producing regions and attacks by Yemen's Iran-aligned Houthis on Aden International Airport.
2. Currency moves
The dollar index rose 0.3% to 102.13 after falling 0.27% on Tuesday. The euro fell 0.4% to $1.1216, the yen weakened 0.13% to 158.31 per dollar, and sterling lost 0.21% to $1.3248.
3. Rate expectations
Markets priced a 21.6% chance of a Fed hike of at least 25 basis points in October, down from about 51% a week earlier, and a 68.6% chance of a hike in December. The September meeting minutes were due at 2 p.m. ET. Commonwealth Bank of Australia strategist Samara Hammoud said, “We expect the Fed to wait until December before hiking again.”
