Dollar towers over peers as markets bet on large Fed rate hike

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Reuters UK

By Alun John HONG KONG (Reuters) – The dollar held near its overnight 20-year peak on Wednesday ahead of the outcome of the Federal Reserve policy meeting at which markets are pricing in an outsized 75 basis point interest rate hike as policymakers try to rein in rampant inflation. A key U.S. currency index, which tracks its performance against six peers, was at 105.3 having hit 105.65 on Tuesday, its strongest since December 2002. Sterling was at $1.20135 after slumping to a 15-month low versus the dollar at $1.1934 the previous day, not helped by the possibility of a new referendum on Scotti…

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