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Home>UPDATE: Dollar hovers near 7-week peak, but gives up some ground against euro

UPDATE: Dollar hovers near 7-week peak, but gives up some ground against euro

UPDATE: Dollar hovers near 7-week peak, but gives up some ground against euro

10/04/2017

By Anora M. Gaudiano, MarketWatch , Rachel Koning Beals

British pound falls as U.K. data disappoint

The U.S. dollar put in a mixed performance on Tuesday, weakening against the euro, but firming against the British pound and the Japanese yen, as investors remained focused on the potential U.S. interest-rate hikes over the next 12 months.

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 by the Federal Reserve, a sharp increase from the less than 50-50-shot priced in about a month ago.

Where are currencies trading?

The ICE U.S. Dollar Index , which measures the buck against a basket of six major rivals, was unchanged by late Tuesday at 93.573, holding near its highest level since mid August (http://www.marketwatch.com/story/euro-extends-losses-after-chaotic-independence-vote-in-spain-2017-10-02).

Despite its recent gains, the buck 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 policies have been in question.

The WSJ Dollar index , which compares the dollar with 16 other currencies, was up less than 0.1% to 86.73, the highest since late July.

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