Dollar Jumps as Markets Fix on December Rate Expectations

The dollar surged to a three-month high and European and Asian stock markets dipped on Thursday as expectations hardened of the first rise in U.S. interest rates in almost a decade coming next month.

Federal Reserve chief Janet Yellen and two senior colleagues pointed to December as a “live possibility” for a rise, adding to signs that the U.S. central bank is again on the verge of moving after months of vacillating over the domestic and global economy’s ability to deal with higher borrowing costs.

An adverse reaction from global markets to September’s policy meeting put the Fed off raising rates when many had expected it to, but there have been some signs this time that investors have grown more sanguine about the likely fallout.

European stocks, after gaining initially on another batch of upbeat corporate results, were down 0.1-0.3 percent.

Reuters

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