Dollar jumps as markets brace for larger, faster rate hikes – Reuters

Dollar jumps as markets brace for larger, faster rate hikes – Reuters

NEW YORK/LONDON, Jan 27 (Reuters) - The dollar soared to highs last seen in July 2020 against other major currencies on Thursday, a day after the Federal Reserve said it could deliver faster and larger interest rate hikes in the months ahead.

With the Fed flagging that it was ready to start lifting rates in March to contain surging inflation, money markets moved to price in as many as five quarter-point increases by year-end.

The Fed's hawkish tone on Wednesday brought dollar bulls out in force. The dollar index , which measures the greenback's value against other major currencies, rose to 97.299, the highest since July 2020. The 0.8% jump was the biggest single-day gain in more than two months.