Reuters
Dollar edges off of 16-month peak as investors assess policy landscape
The U.S. dollar eased off of a fresh 16-month high on Wednesday, while the euro remained on its back foot as investors adjusted central bank tightening odds amid rising pricing pressures, with the U.S. Federal Reserve seen hiking rates as early as mid-2022. Versus the yen, the greenback hit a 4-1/2-year high and tested the $1.12 level against the euro, helped by robust U.S. retail sales data and hawkish comments from Fed policymakers, which contrasted with dovish remarks from the head of the European Central Bank. Money markets are now pricing in a high probability of a Fed rate increase in June, followed by another in November.
