Dollar mixed as traders wait on Fed, Aussie gains
TLT•The dollar was mixed as traders weighed oil-driven inflation risks and awaited next week's Federal Reserve meeting; the Australian dollar rose 0.24% after an RBA deputy governor said the inflation outlook looked materially worse.
1. Fed outlook in focus
The dollar was mixed on Wednesday as traders weighed renewed oil-driven inflation risks and awaited next week's Federal Reserve meeting. The dollar index fell 0.03% to 101.76, while the euro slipped 0.11% to $1.1224.
2. Currencies diverge
The Australian dollar rose 0.24% to $0.702 after RBA Deputy Governor Andrew Hauser said the inflation outlook looked “materially worse.” The euro faced pressure from French protests and fiscal concerns as French 10-year borrowing costs reached a 24-year high; sterling was flat, and the yen firmed 0.08% to 158.04 per dollar.
3. Oil and inflation risks
Oil prices rose more than $2 after Iran said there was little reason to expect diplomatic progress with the United States. Brent crude was near five-month highs, while traders also considered the potential effects of oil-driven inflation on Fed policy.
