The dollar remained higher Friday, supported by reduced bets for another interest-rate cut in December after Federal Reserve Chair Jerome Powell said it was far from a done deal.
The Fed delivered a widely expected 25-basis-point rate cut on Wednesday. However, with a lack of official data at the Fed’s disposal during the continuing U.S. government shutdown, Powell said another cut in December wasn’t a foregone conclusion.
“If the government shutdown continues, it would not be obvious that the Fed will continue with rate cuts,” Jefferies economist Mohit Kumar says in a note.