Market News
Dollar holds firm as US rates outlook still dominates - BLOOMBERG
By Rae Wee and Greta Rosen Fondahn
SINGAPORE, Dec 24 (Reuters) - The dollar defended its recent dominance on Tuesday in a holiday-lined week, as investors considered the prospect of higher-for-longer U.S. interest rates, leaving other major currencies struggling near milestone lows.
The U.S. dollar has leaped ahead over the past three months against a basket of currencies , fuelled by diverging central bank outlooks.
After its policy meeting on Wednesday, the U.S. Federal Reserve now looks set to hold rates higher for longer than markets had expected, elevating U.S. Treasury yields and sending the currency 1.2% up to two-year peaks.
