Dollar holds near multi-month high after Fed’s hawkish tilt

 Dollar holds near multi-month high after Fed’s hawkish tilt

TOKYO (Reuters) – The dollar held near multi-month peaks against other major currencies on Monday, after the U.S. Federal Reserve surprised markets last week by signalling it would raise interest rates and end emergency bond-buying sooner than expected.

FILE PHOTO: A U.S. five dollar note is seen in this illustration photo June 1, 2017. REUTERS/Thomas White/Illustration/File Photo

The dollar index, which tracks the greenback against six major currencies, stood at 92.232 after gaining 1.9% last week, its biggest rise since March 2020.

On Friday, it jumped above key resistance around 91.95, marking a 61.8% retracement from its decline to 89.53 earlier this month from an April peak of 93.439.

“Like many, I had expected the 61.8 Fibonacci retracement in the dollar index to hold for a bit … and at least see some consolidation,” said Chris Weston, the head of research at Pepperstone Markets Ltd, a foreign exchange broker based in…

Read full article…www.reuters.com