Wall Street in the red after modest Fed rate hike
March 24, 2023
3/27/23Linea Mercati Interview
March 28, 2023The dollar rises as global investors seek safer assets with fears that more banks may run into troubles, while China-US relations deteriorate further. The WSJ Dollar Index is up 0.5% and the ICE gauge advances 0.6% as the greenback strengthens 0.8% to the euro and 0.6% versus the pound, while weakening 0.5% against the yen. The rally comes despite growing bets on softer monetary policy and falling Treasury yields, challenging the link between higher US interest rates and a stronger dollar that has driven markets in the recent past. Spartan’s Peter Cardillo cites “banking worries and geopolitical tensions” as supporting the dollar today.
