Dollar steigt aufgrund von Fed-Signalen, kann aber sein Zweijahreshoch nicht halten

By Gertrude Chavez-Dreyfuss

NEW YORK, Apr 7 (Reuters) -The U.S. dollar rose to near two-year highs on Thursday as investors digested hawkish signals from the Federal Reserve but wondered whether the currency’s value already reflected the expected tightening.

* The dollar index hit 99.823 on Thursday, the highest since late May 2020, but was ultimately up 0.2% at 99.810.

* „With traders pricing in more than 225 basis points of interest rate hikes in the remainder of the year, there is certainly more risk of the Fed missing expectations than exceeding them,“ said Matthew Weller, global head of research at FOREX.com and City Index.

* „The dollar’s uptrend has started to falter against some of its commodity-linked rivals, but until the euro and yen find a floor, the path of least resistance for the dollar index remains up,“ he added.

* St. Louis Fed President James Bullard, who sits on the Federal Open Market Committee this year and is a known hawk, continued to sound the alarm on inflation Thursday.

* Bullard said the Fed continues to lag in its fight against inflation, despite increases in mortgage rates and government bond yields that have come ahead of actual changes in the central bank’s target federal funds rate.

* Bullard’s comments, however, had little impact on the dollar.

* Chicago Fed President Charles Evans and Atlanta Fed President Raphael Bostic, neither of whom votes in 2022, supported rate hikes on Thursday, but offered a somewhat dovish counterpoint.

* The euro touched a one-month low against the dollar at $1.0871, but was eventually down 0.2% at $1.0875. Against the yen, the dollar rose 0.2% to 123.990.