Dollar jumps as markets brace for larger, faster rate hikes

Published by
Reuters UK

By Herbert Lash and Dhara Ranasinghe NEW YORK/LONDON (Reuters) -The dollar soared to its highest levels since July 2020 against other major currencies on Thursday, powered by bets the U.S. Federal Reserve could deliver faster and larger interest rate hikes in the months ahead. A day after the Fed flagged that it was ready to start lifting rates in March to contain surging inflation, money markets moved to price in as many as five quarter-point increases by year-end. The Fed’s hawkish tone on Wednesday brought dollar bulls out in force. The dollar index , which measures the greenback’s value ag…

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