Forex
Dollar Rally Pauses as Yields and Oil Retreat
The US dollar has paused its rally after the Federal Reserve's rate hike and signaled further tightening. The euro rose 0.1% to $1.14755 on Thursday, following a 0.7% drop on Wednesday.
US Treasury yields and oil prices have also retreated, contributing to the dollar's correction. Marc Chandler, chief market strategist at Bannockburn Forex, attributed the dollar's move to US interest rates, saying 'the dollar corrects a little bit' when yields ease.
The Fed may still not raise rates as aggressively as markets expect, making the dollar vulnerable to any disappointment. Markets remain far more hawkish than the Fed, with investors pricing in more rate hikes than policymakers project.