Dollar holds near 18-month high, euro lags as bond yields rise
TLT•TLT•TLT•TLT•The dollar edged toward an 18-month high as rising yields and oil prices weighed on the euro, which neared a 17-month low. Fed minutes kept a December rate hike in play, while futures priced an 80% chance of rates holding at the next meeting.
The dollar edged toward its strongest level in 18 months on Thursday as higher oil prices and rising euro zone bond yields weighed on the euro. The euro was down slightly at $1.1191, near its lowest level in 17 months, as the gap between German and French 10-year yields widened by 4 basis points. The dollar index rose 0.1% to 102.32.
Minutes from the Federal Reserve’s September 15-16 meeting indicated that policy might need to be tightened further after policymakers voted unanimously to raise rates by a quarter of a percentage point. Futures priced an 80% probability that the Fed would hold rates at its meeting ending October 28, while a December hike was fully priced in. The dollar rose 0.1% against the yen to 158.22.
