Dollar Falls on Easing Oil Prices, Rate Hike Bets Continue to Rise
The US dollar fell on Friday due to easing oil prices, but is poised for its second straight weekly advance as rate hike bets grow. The dollar index dropped 0.34% and was on track for its biggest daily percentage decline since September 3, to 100.95.
Oil prices have eased but remain above $100 a barrel, continuing to exert upward pressure on inflation. Central bank officials' comments flagging inflation concerns and supporting more rate increases after last week's hike of 25 basis points have boosted market expectations for a more aggressive monetary policy path.
Eugene Epstein, head of trading and structured products at Moneycorp in Stamford, Connecticut, said the dollar's recent gains might be 'a little stretched,' but added that the current factors driving the dollar stronger are still present.