Dollar Soars as Warsh Hints at September Rate Hike
The US dollar rallied on Friday as investors responded to a hawkish speech from Fed Chair Warsh. In contrast, equities, gold, and Bitcoin retreated.
Warsh's speech revived expectations for a September interest rate hike, with chances now standing at 60%. This represents a significant increase from the previous 33% chance.
The market reaction was risk-negative, with US stocks declining. The dollar, on the other hand, posted gains across the FX spectrum, particularly in the USD/JPY pair, which experienced its largest daily decline since mid-June and is currently trading below 1.1600.