Dollar holds losses as markets await Fed minutes, speakers
TLT•The dollar remained lower as markets awaited Federal Reserve minutes and policymaker speeches. The market-implied chance of an October rate hike fell to 20.5% from about 51% a week earlier.
1. Markets await Fed signals
The dollar remained lower on Wednesday after European bond-market stress eased, with investors focused on the release of minutes from the Federal Reserve’s September 15-16 meeting and speeches by policymakers. The dollar index rose 0.03% to 101.94 after falling 0.27% in the prior session.
2. Rate hike odds retreat
Softer-than-expected personal consumption expenditures and jobs data have tempered expectations for an imminent rate hike. The market-implied chance of a hike of at least 25 basis points in October fell to 20.5% from about 51% a week earlier, while the chance of a December hike stood at 84.5%.
3. Yen and euro moves
The euro eased 0.08% to $1.1249, and the yen weakened 0.19% to 158.43 per dollar. Bank of Japan policymaker Ayano Sato said she supported raising interest rates in several stages.
