U.S. dollar rises, but off near two-year peak amid hawkish Fed signals

U.S. dollar banknotes are displayed in this illustration taken, February 14, 2022. REUTERS/Dado Ruvic//

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NEW YORK, April 7 (Reuters) – The U.S. dollar climbed to nearly two-year highs on Thursday, as investors digested hawkish signals from the Federal Reserve, but wondered whether the currency’s value already reflected further tightening moves.

The dollar index hit 99.823 on Thursday, the highest since late May 2020. It was last up 0.2% at 99.810.

“With traders pricing in more than 225 basis points of interest rate hikes over the rest of this year, there’s certainly more risk of the Fed failing to meet expectations than exceed them,” said Matthew Weller, global head of research at FOREX.com and City…

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