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Dollar Pares Losses Against Major Peers As Potential 75 Bps Fed Rate Hike Looms

The U.S. dollar traded strongly on Monday morning, gaining against most peers ahead of a potential 75 basis points rate hike by the U.S. Federal Reserve later this week. The U.S. dollar index, which measures the greenback’s strength against a basket of currencies, traded close to 106.64, below its two-decade high of 109.29 recorded in early July.

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Why A 1% July Interest Rate Hike May Be Off The Table

The U.S. Federal Reserve raised its target Fed funds rate by 0.75% in June, its first interest rate hike of that size since 1994. With this month's Federal Open Market Committee meeting just around the corner, investors are still debating whether the Fed will opt for another 0.75% rate hike or go even more aggressive with a full 1% hike.

SPY