The dollar index (DXY00) is up +0.09% and posted a new 2-week high. The dollar is seeing support from today’s +2.5 bp rise in the 10-year T-note yield, which supported the dollar’s interest rate differentials.
The dollar also has support ahead of this afternoon’s FOMC meeting results, amid expectations that Fed Chair Warsh will deliver somewhat hawkish commentary on future rate hikes to curb inflation above target. Markets are pricing in only a 9% chance of a rate hike at this week’s meeting, but a 94% chance of a hike at the FOMC’s next meeting on December 8-9.
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