Dollar bounces with bets on hawkish Fed; sterling drops

Published by
Reuters UK

By Sinéad Carew and Harry Robertson NEW YORK/LONDON (Reuters) – The dollar rose on Thursday as U.S. Treasury yields increased and investors bet on a relatively hawkish Federal Reserve, while the British pound fell as the UK government unveiled its latest budget update. The greenback has been falling in recent weeks as inflation data and Federal Reserve commentary implied that it could soon slow the pace of its interest rate hikes. But at an event on Wednesday, St. Louis Federal Reserve President James Bullard showed a graphic suggesting that even dovish assumptions would require rates to rise …

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