U.S. dollar sails higher as markets price in hefty Fed rate hike



(In 6th paragraph, corrects to show the dollar is on track in 2022 to post its largest yearly percentage gain in 38 years, not 18)

* Markets in consolidation mode ahead of Fed policy decision

* Fed funds futures price in 19% chance of 100-basis-point hike

* China's yuan hits 26-month low against dollar

* New Zealand dollar falls to lowest since May 2020 vs U.S. dollar

By Gertrude Chavez-Dreyfuss

NEW YORK, Sept 19 (Reuters) - The dollar rose against major currencies on Monday, trading within narrow ranges, ahead of a slew of central bank meetings this week led by the Federal Reserve, which is likely to raise interest rates by another 75 basis points (bps).

Volume was light overall, with markets in London and Tokyo closed for public holidays.

World stock markets remained on edge, however, and the dollar maintained its firm tone, given expectations that the Fed would maintain its aggressive tightening path until next year to contain stubbornly high inflation.

Fed funds futures have priced in an 81% chance of a 75 bps rate hike this week and a 19% probability of a 100-increase at the conclusion of the U.S. central bank's two-day policy meeting, according to Refinitiv data FEDWATCH

The dollar index =USD , which measures the currency against six counterparts, was up 0.1% at 109.62, not far from 20-year high of 110.79 hit on Sept. 7.

Since the beginning of the year, the dollar index has surged 14.7%, on track for its best yearly percentage gain in 38 years.

"Generally, the trend is your friend until the bend in the end. The dollar is going to follow that pretty well," said Amo Sahota, executive director, at FX consulting firm Klarity FX in San Francisco.

"Will there be more dollar strength before the FOMC (Federal Open Market Committee)? I think the market is going to pull a little bit here. It will go into a holding pattern and some consolidation," he added.

This week is also smattered with holidays that could thin liquidity and result in sharper price moves, with Japan and Britain off on Monday, Australia on Thursday, and Japan again on Friday, among others.

In other currencies, the euro was little changed against the dollar at $1.0021 EUR=EBS , sterling slipped 0.1% to $1.1424 GBP=D3 and within sight of Friday's 37-year low of $1.13510, while the New Zealand fell 0.6% to US$0.5958 NZD=D3 .

Earlier in the session, the New Zealand unit fell to its lowest since May 2020 of US$0.5933

The Canadian dollar fell to its lowest in almost two years to C$1.3354 per U.S. dollar CAD=D3 . The U.S. dollar last changed hands at $1.3258, flat on the day.

Against the yen, the dollar rose 0.2% to $143.18 JPY=EBS , hovering beneath a strong resistance level at 145 that has been reinforced by Japanese policymakers' toughened talk of currency intervention.

The Bank of Japan is widely expected to stick with massive stimulus at its meeting on Wednesday and Thursday, keeping its ultra-loose policy in place. But a turning point in Japanese monetary policy may come sooner than has been thought, with the central bank recently dropping the word "temporary" for its description of elevated inflation.

China's yuan ended at a fresh 26-month low on Monday and traded below the psychologically critical 7-per-dollar level CNY=CFXS . In offshore trade, the yuan was 0.35 weaker CNH=D3 .

Bitcoin BTC=BTSP , the biggest cryptocurrency by market value, fell to a three-month low below $19,000, as unease over rising interest rates globally knocked risk assets. It was last down 0.2% at $19,381.

Ether, the cryptocurrency used in the Ethereum blockchain, rallied from a two-month low against the dollar and was last 1.4% higher at $1,358.60 ETH=BTSP .

Ethereum went through a major software upgrade last week that alters the way ether tokens are created, drastically reducing its energy usage.

========================================================

Currency bid prices at 3:19PM (1919 GMT) Description

RIC

Last

U.S. Close Pct Change

YTD Pct

High Bid

Low Bid

Previous

Change

Session

Dollar index

=USD

109.6000

109.5500

+0.06%

14.569%

+110.1800 +109.4800 Euro/Dollar

EUR=EBS

$1.0022

$1.0015

+0.07%

-11.84%

+$1.0029

+$0.9966 Dollar/Yen

JPY=EBS

143.2100

142.9400

+0.19%

+24.40%

+143.6400 +142.6500 Euro/Yen

EURJPY=

143.51

143.13

+0.27%

+10.12%

+143.5500 +142.8100 Dollar/Swiss

CHF=EBS

0.9645

0.9644

+0.17%

+5.90%

+0.9695

+0.9630 Sterling/Dollar GBP=D3

$1.1431

$1.1422

+0.08%

-15.48%

+$1.1441

+$1.1356 Dollar/Canadian CAD=D3

1.3255

1.3262

-0.06%

+4.83%

+1.3344

+1.3252 Aussie/Dollar

AUD=D3

$0.6722

$0.6722

+0.03%

-7.50%

+$0.6734

+$0.6673 Euro/Swiss

EURCHF=

0.9665

0.9660

+0.05%

-6.79%

+0.9671

+0.9634 Euro/Sterling

EURGBP=

0.8764

0.8768

-0.05%

+4.33%

+0.8787

+0.8748 NZ

NZD=D3

$0.5958

$0.5989

-0.48%

-12.92%

+$0.6002

+$0.5929 Dollar/Dollar

Dollar/Norway

NOK=D3

10.2225

10.2040

+0.20%

+16.06%

+10.3320

+10.1900 Euro/Norway

EURNOK=

10.2472

10.2059

+0.40%

+2.35%

+10.3125

+10.2062 Dollar/Sweden

SEK=

10.7823

10.7337

+0.48%

+19.57%

+10.8348

+10.7251 Euro/Sweden

EURSEK=

10.8073

10.7560

+0.48%

+5.60%

+10.8244

+10.7571



World FX rates Link
Dollar holding strong as markets brace for another aggressive Fed rate hike Link



Reporting by Gertrude Chavez-Dreyfuss in New York; Additional reporting by Dhara Ranasinghe in London and
Kevin Buckland in Tokyo; Editing by Bradley Perrett, Frank Jack Daniel, Paul Simao and Marguerita Choy

Disclaimer: De entiteiten van de XM Group bieden diensten en toegang tot ons online handelsplatform op basis van uitsluitend-uitvoering, waardoor een persoon de beschikbare content op of via de website kan bekijken en/of gebruiken, zonder dat dit is bedoeld voor wijziging of uitbreiding. Dergelijk(e) toegang en gebruik vallen onder: (i) de algemene voorwaarden; (ii) risicowaarschuwingen; en de (iii) volledige disclaimer. Dergelijke content wordt daarom alleen aangeboden als algemene informatie. Wees u er daarnaast vooral van bewust dat de inhoud op ons online handelsplatform geen verzoek of aanbieding omvat om transacties op de financiële markten uit te voeren. Het beleggen op welke financiële markt dan ook vormt een aanzienlijk risico voor uw vermogen.

Alle materialen die op ons online handelsplatform worden gepubliceerd zijn bedoeld voor educatieve/informatieve doeleinden en omvatten geen – en moeten niet worden beschouwd als het bevatten van – financieel, vermogensbelastings- of handelsadvies en aanbevelingen, of een overzicht van onze handelsprijzen, of een aanbod of aanvraag van een transactie in financiële instrumenten of ongevraagde financiële promoties voor u.

Alle content van derden, alsmede content die is voorbereid door XM, zoals opinies, nieuws, onderzoeken, analyses, prijzen en andere informatie of koppelingen naar externe websites op deze website worden aangeboden op een 'zoals-ze-zijn'-basis, als algemene marktcommentaren, en vormen geen beleggingsadvies. Voor zover dat content wordt beschouwd als beleggingsonderzoek, moet u zich ervan bewust zijn en accepteren dat de content niet bedoeld was en niet is voorbereid in overeenstemming met de wettelijke vereisten die zijn opgesteld om de onafhankelijkheid van beleggingsonderzoek te bevorderen en als zodanig onder de geldende wetgeving en richtlijnen moet worden beschouwd als marketingcommunicatie. Zorg ervoor dat u onze Mededeling over niet-onafhankelijk beleggingsonderzoek en risicowaarschuwing in verband met de voorgaande informatie doorneemt en begrijpt; die kunt u hier lezen.

We gebruiken cookies om u de beste ervaring op onze website te bieden. Meer lezen of wijzig uw cookie-instellingen.

Risicowaarschuwing: Uw vermogen loopt risico. Hefboomproducten zijn mogelijk niet voor iedereen geschikt. Lees onze informatie over risico's.