October 16, 2021
Economy

Dollar near 1-year high as Fed tightening in focus, Aussie climbs

  • Yen set for worst month since March
  • Yuan poised for monthly drop
  • China markets shut from Friday for a week

TOKYO, Sept 30 (Reuters) – The greenback hovered near a one-year high versus major peers on Thursday as expectations mounted that the Federal Reserve will taper stimulus from November, while the commodity-linked Aussie dollar benefited from a bounce in iron ore prices.

The safe-haven dollar has made sharp gains over the last two sessions on concern the Fed could withdraw economic support as global growth slows and high inflation is high. Spiking bond yields added to the currency’s firmness.

Its rise is despite an impasse in Washington over the U.S. debt ceiling that threatens to plunge the government into a shutdown.

The dollar index – which measures the currency against a basket of six rivals – stood at 94.327, little changed from Wednesday, when it hit 94.435 for the first time…

Read full article here: www.reuters.com