Dollar holds ground at six-week highs
By Rachel Koning Beals
Australian dollar hit as Royal Bank of Australia offers sober economic assessment
The dollar gained modestly for back-to-back sessions Tuesday, lifted by higher U.S. Treasury yields as relatively upbeat U.S. data to start the week strengthened the odds for dollar-supportive U.S. interest-rate hikes this year and into 2018.
Federal funds futures markets (http://www.cmegroup.com/trading/interest-rates/countdown-to-fomc.html/?redirect=/trading/interest-rates/fed-funds.html) have priced in more than a 70% chance for a rate hike in December, a sharp increase from the less than 50-50-shot priced in about a month ago.
Australia's dollar, meanwhile, fell to its lowest level in more than two months, after the Reserve Bank of Australia left interest rates unchanged and gave a mixed review of the economy.
Where are currencies trading?
The ICE U.S. Dollar Index , which measures the buck against a basket of six major rivals, teetered between narrow gains and losses early Tuesday. It was last quoted up less than 0.1% at 93.625, though still trading at its highest levels since mid-August.
Despite its recent gains, the dollar remains down more than 8% for 2017, on track for its biggest annual decline in a decade as the pace of Fed interest-rate hikes and economy-boosting fiscal and trade policy have been in question.