Dollar Strengthens to 2-Week High as Investors Speculate on Sooner Tapering
The Dollar Index strengthened to a two-week high on Monday as investors were speculating on sooner-than-expected Fed's tapering.
The Dollar Index strengthened to a two-week high on Monday against major currencies in the anticipation that the U.S. Federal Reserve could pull back its assets purchasing sooner despite the ongoing Covid-19 surge.
The Dollar Index rose 0.3% to 92.880 in the afternoon, reaching its highest level since August 27, 2021. The U.S. consumer price data is scheduled to be released on Tuesday in which investors will take it into account to look for signals of asset tapering in the Fed’s meeting next week.
A number of Fed’s members continued to voice their opinion in the past few days to a reasonably prompt tapering of its QE program despite the rising numbers of Covid-19 cases stateside and the disappointing recent nonfarm payrolls.
The Philadelphia Fed President Patrick Harker was the latest member to opine, saying that he wants the central bank to start tapering this year.