Fed Decision Worsens Dollar Outlook -- Market Talk
Dow Jones2026/07/30 09:320932 GMT - Uncertainty over the Federal Reserve's reaction function to inflationary risks leaves the dollar vulnerable, MUFG Bank's Derek Halpenny says in a note. Fed Chair Kevin Warsh provided little explanation for the central bank's decision to leave rates steady Wednesday, he says. Risks are skewed towards a further curve steepening with long-end yields rising more than short-end yields, he says. This tends to coincide with dollar depreciation, he says. "Fed credibility is being questioned today and after a big jump in inflation expectations the dollar outlook has certainly worsened." The DXY dollar index rises 0.1% to 100.966, having reached a one-week low of 100.762 Wednesday. (renae.dyer@wsj.com)
(END) Dow Jones Newswires
July 30, 2026 05:32 ET (09:32 GMT)
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