The US dollar strengthened against major currencies in New York foreign exchange trading on Tuesday, September 15, as investors expect continuously surging oil prices to push the Federal Reserve to raise interest rates to curb inflation. The dollar index rose 0.23% to 99.616, while the yen weakened to 155.09 yen from 154.05 yen on Monday, and the Swiss franc stood at 0.8185 francs from 0.8163 francs. The Canadian dollar was at 1.3917 Canadian dollars from 1.3902 Canadian dollars, while the euro weakened to 1.1543 dollars from 1.1557 dollars, and the pound weakened to 1.3481 dollars from 1.3511 dollars. WTI crude rose 4.38% and Brent crude rose 2.90%, with both grades still closing above 100 dollars per barrel, after reports that crude loading at the Yanbu port, Saudi Arabia's oil export hub on the Red Sea coast, had been suspended, and Saudi Arabia also announced the cancellation of some oil shipments to European customers. Meanwhile, the yield on 10-year US Treasury bonds jumped to 5.041%, the highest level in 19 years, or since 2007. The CME Group's FedWatch Tool indicates that investors assign a 94.5% probability to the Fed raising interest rates by 0.25% after today's meeting concludes, in response to inflation driven by the surge in oil prices. Investors are also watching the Fed's Dot Plot policy rate projections at this meeting, as well as the release of US economic forecasts, including gross domestic product, the unemployment rate, and the inflation rate.
CME Group Inc