- <a href=”https://tmsnrt.rs/2RBWI5E”>Graphic: World FX rates</a>
NEW YORK, Oct 18 (Reuters) – The dollar gained slightly on the day on Monday as Treasury yields rose on expectations the Federal Reserve will need to hike interest rates sooner than previously expected to quell rising price pressures.
Market participants expect the U.S. central bank will need to act as inflation looks to be stubbornly persistent and unlikely to fade anytime soon.
Global increases in inflation are also increasing expectations that rate hikes will need to be global, as New Zealand faced its highest price pressures in a decade and after Bank of England Governor Andrew Bailey sent a fresh signal that the central bank was gearing up to raise interest rates as inflation risks mount. read more
“Global bond markets are finally waking up to the risks that inflation isn’t as transitory as most central banks insist,” Win Thin, global head of currency strategy at Brown Brothers…