Analyst: U.S. Rate Hike Prospects Support Dollar Amid High Energy Prices

On May 19, according to Jin10, Zaheer Anwari, an analyst at Revacy Fund, highlighted in a report that the outlook for U.S. interest rate hikes is supporting the dollar due to high energy prices. The co-founder and CEO stated, "Persistent inflationary pressures are leading the market to expect that interest rates will remain elevated for an extended period." LSEG data indicates that the U.S. money market has fully priced in a 25 basis point rate hike by the Federal Reserve by March 2027, with a 62% probability of a rate hike by the end of 2026. Anwari noted that both the dollar index and oil prices are currently fluctuating within a range, reflecting overall global market uncertainty.