News Daily Spot: The dollar appreciates against expectations for Fed action

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The dollar appreciates against expectations for Fed action

The dollar was widespread appreciation Monday on expectations that the US Federal Reserve will raise interest rates next week, after strong jobs report met last week.


The interest rate futures implied traders give about a 78 percent chance of an increase in federal funding for the first time in nearly a decade when the Fed meets next week, according to the CME program Fedwatch Group.

"It's almost a fact that will make the decision," said Charles St-Arnaud, currency strategist at Nomura Securities International in New York, referring to a rate hike at the Fed meeting on 15 and 16 this month.

The dollar rose for a second day after unexpectedly sinking 3 percent on Thursday after the European Central Bank injected to the economy of the euro zone less stimulation of market expectations.
The euro was down 0.45 percent at $ 1.0838, while the dollar was up 0.1 percent against the yen at 123.23 yen per unit.

The dollar index rose 0.36 percent to 98.707. The appreciation of the dollar was more pronounced against other currencies, such as 1.5 percent against the New Zealand dollar gained before the meeting of the Reserve Bank of New Zealand scheduled for Wednesday.

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