The U.S. dollar traded at 14-month highs against a basket of major currencies early on Tuesday, benefiting from a run in sterling and after a Federal Reserve study sparked more buying interest. The dollar index climbed as far as 84.349, bringing into view the July 2013 peak of 84.753. A break there will take it to highs not seen since July 2010.
Giving bulls a boost, a research from the San Francisco Fed noted that investors are pricing in a lower trajectory for interest rate rises than members of the Fed itself.
“The market’s interpretation is that perhaps it had better re-price those expectations,” said Emma Lawson, senior currency strategist at National Australia Bank.
CNBC
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