The dollar strengthens as “there is greater room for an upward reassessment in US interest rate expectations relative to other major economies,” BBH analysts write.
The Atlanta Fed’s updated projection of 2.6% GDP growth this year, up from 2.5% previously, compares with a long-run trend of 1.8%, BBH says. Rising Treasury yields also support the dollar.
Meanwhile, Governor Lisa Cook fails to give a clear hint about whether the Fed will cut or hold rates next month.
The WSJ Dollar Index rises 0.5%. The greenback strengthens 0.8% versus the euro and 0.6% to the yen.
