Dollar steady near 18-month high after Fed minutes flag inflation risks
TLT•The dollar index was steady at 102.25, near its strongest level in 18 months, after Fed minutes highlighted inflation risks. The U.S. 10-year Treasury yield rose 3 basis points to 5.303%.
1. Dollar holds near high
The dollar held near its strongest level in 18 months in subdued Asian trading after minutes from the Federal Open Market Committee’s September meeting indicated policymakers viewed inflation as the biggest risk to their outlook. The dollar index was steady at 102.25 after gaining 0.3% on Wednesday.
2. Rates and currency moves
The Fed’s minutes indicated divisions over the reasons for its unanimous quarter-point rate increase at the September 15-16 meeting. The U.S. 10-year Treasury yield rose 3 basis points to 5.303%. Futures priced an 81.7% probability that the Fed would hold rates at its meeting ending October 28, up from 80.1% a day earlier.
3. Other currencies
The dollar rose 0.1% to 158.18 yen. The Australian dollar fell 0.1% to $0.6955, while the kiwi was flat at $0.5602; the euro rose 0.1% to $1.1202 and the pound was unchanged at $1.3212.
