Dollar Races Higher as Markets Brace for Larger, Faster Rate Hikes

Dollar Races Higher as Markets Brace for Larger, Faster Rate Hikes
Euro, Hong Kong dollar, U.S. dollar, Japanese yen, pound, and Chinese 100 yuan banknotes are seen in this picture illustration on Jan. 21, 2016. Jason Lee/Illustration/Reuters
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LONDON—The dollar soared to its highest levels since July 2020 against other major currencies on Thursday, powered by bets the U.S. Federal Reserve could deliver faster and larger interest rate hikes in the months ahead.

A day after the Fed flagged that it was ready to start lifting rates in March to contain inflation, money markets moved to price in as many as five quarter-point increases by year-end.