Dollar Climbs to Strongest Since 2003 on Fed Path; Bonds Drop - Bloomberg
The Fed’s move has added to speculation of a shift away from global central-bank policy and toward fiscal stimulus that has helped fuel a rally in stocks and rout in global bonds since the election of Donald Trump in November. Still, the U.S. central bank stands largely alone in actively tightening policy, boosting the dollar against its peers. Policy makers in Norway, South Korea and Switzerland kept rates on hold Thursday, and the Bank of England is forecast by analysts to do the same at a meeting later today.
“The Fed is becoming a leopard with new spots,” said Stephen Gallo, currency analyst at BMO Capital Markets in London. “The Fed has shifted its 2017 bias away from supporting growth with ultra-stimulative policies towards keeping a lid on inflation risk.”