Market News
Dollar rises amid Fed rate cut expectations, better-than-expected retail sales data - REUTER
- Markets await Fed rate decision
- Dollar index rises, Euro weakens
- Bitcoin soars to record high
NEW YORK, Dec 17 (Reuters) - The U.S. dollar gained against major currencies on Tuesday following better-than-expected retail sales data that showed underlying economic momentum while markets braced for interest rate moves from the Federal Reserve and other central banks.
Commerce Department data on Tuesday showed U.S. retail sales surpassed expectations by jumping 0.7% in November, backed by an uptick in motor vehicle and online purchases.
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Markets expect the Fed will deliver a 25-basis-point interest rate cut at the end of its two-day policy meeting on Wednesday, with futures implying a nearly 97% chance of a cut, according to the CME's FedWatch tool.
Against the Swiss franc , the dollar edged lower by 0.2% to 0.89270 in choppy trading, after hovering near its highest level since July. The euro , which is heading for a drop of nearly 5% against the dollar this year, was down 0.24% at $1.048825.
The U.S. dollar index - which tracks the currency against six others - rose 0.17% to 106.97, after trading as high as 107.08 on the session.
"The market is trying to debate whether it's time to fade the dollar, which has had an incredible run this year," said Marvin Loh, senior global market strategist at State Street in Boston.
"But it seems hard to really push back against U.S. exceptionalism and a stronger dollar going into the new administration, whether we're talking about a Fed that will probably not seem as dovish as it did in September or the challenges that keep popping up in the emerging and developed markets that make the dollar a safe haven."
