US dollar climbs as strong inflation lifts Fed rate hike bets
TLT•The US dollar rebounded after October headline and core inflation exceeded forecasts; market odds of a 25-basis-point December Fed rate hike rose to 90%, with a 10% chance of a 50-basis-point increase.
1. Dollar rebounds
The US dollar rebounded after October monthly core and headline inflation exceeded forecasts, boosting expectations for Federal Reserve rate hikes. Market odds of a 25-basis-point hike in December rose to 90%, while the chance of a 50-basis-point increase stood at 10%. Dollar strength limited euro gains, and renewed increases in French borrowing costs also weighed on the currency.
