U.S. data shows growing economic weaknessFrench inflation risesU.S. dollar strength is “exaggerated” – analyst
NEW YORK, Feb 28 (Reuters) – The dollar ticked higher against major currencies in choppy trading on Tuesday, on track for its first monthly gain since September on views that interest rates will stay elevated for some time as inflation remains stubbornly high, while recession fears kept investors on edge.
Recent upbeat data, such as a blockbuster employment report for January, helped the greenback rally in February on expectations that the Federal Reserve will have to raise interest rates higher and longer than the market had earlier anticipated to fight inflation.
U.S. rate futures have priced in the Federal Reserve’s target policy rate peaking at 5.4% in September, while rate cuts for this year have been largely priced out. The Fed’s policy rate is currently in a 4.50%-4.75% target range.