Currency Buzz: Dollar Index Pulls Back After Overnight Rally

29 Nov 2022 , 09:19 AM

Dollar lost sheen post an overnight rally following hawkish comments from Fed officials on interest rate hikes. St. Louis Fed President James Bullard said on Monday that the Fed has ?a ways to go? on interest rate hikes, and could keep hiking them and hold them until 2024 to combat inflation. He also reiterated his view that rates need to rise by at least another 1% to between 5% and 5.25%. Separately, New York Federal Reserve President John Williams said the central bank will likely begin trimming rates in 2024, as inflation pressures eventually ease. He also said that borrowing costs need to rise further to bring down inflation. Their comments boosted the dollar. The dollar index that measures the greenback against a basket of currencies jumped nearly 0.7% overnight, but is currently quoting lower by 0.4% at 106.22. Powered by Commodity Insights