Dollar Steadies Near 16-Month High; New Zealand Dollar Weakens

Dollar Steadies Near 16-Month High; New Zealand Dollar Weakens
A U.S. one dollar banknote is seen in front of displayed stock graph in this illustration taken on May 7, 2021. Dado Ruvic/Illustration/Reuters
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LONDON—The dollar index held near 16-month highs on Tuesday after Federal Reserve Chair Jerome Powell was picked for a second term, reinforcing market expectations that U.S. interest rates will rise in 2022.

Currency markets have been mostly driven in recent months by market perceptions of the different paces at which global central banks reduce pandemic-era stimulus and raise rates.