Dollar near one-year high as Fed tightening in focus

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Souvenir banknotes of 100 US dollars and 50 US dollars.

Pavlo Conchar | LightRocket | Getty Images

The dollar hovered near a one-year high versus major peers on Thursday, following a two-day surge amid expectations for a tapering of Federal Reserve stimulus from November and a possible interest rate hike in late 2022.

The safe-haven greenback also saw a bid on worries the Fed could start to tighten into a period of slowing global growth and persistently high inflation, and perversely did well amid 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 94.336, little changed from Wednesday, when it hit 94.435 for the first time since late September of last year.

The dollar bought 111.86 yen, easing slightly after reaching 112.05 overnight, a level not seen since February 2020.

The euro was little changed at $1.1602,…

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