Lates News

On Wednesday, as the market bet that the Federal Reserve would further raise interest rates, the dollar rose to its highest level since the end of July against a basket of currencies. The Fed raised interest rates by 25 basis points last week and hinted that it would raise rates at least once more this year. As market expectations for rate hikes continued to heat up, the dollar gained support. During European afternoon trading, a renewed rise in energy prices also boosted the dollar, with Brent crude oil prices rising back above $100 per barrel. Because of the dollar's safe-haven properties and the United States' status as a net oil exporter, rising energy prices are usually beneficial to the dollar. However, as interest rate expectations became the dominant factor, the dollar's sensitivity to oil price fluctuations declined somewhat. "The medium- to long-term dollar strengthening trend we previously forecast may finally be beginning to emerge," Standard Chartered strategist Steve Englander said in a report.