Fed funds futures traders are pricing for its benchmark rates to rise to 3.50% by March, from 1.58% now. The Fed is expected to lift rates by 75 basis points at its July 26-27 meeting. “The Fed is going to raise rates more aggressively than most other developed market central banks and we don’t think other developed market central banks really have the bandwidth to keep up,” Rai said. currency has gained on expectations that the Fed will continue to aggressively raise rates as it tackles soaring inflation.

The dollar index reached 108.19, the highest since October 2002. The euro tumbled as low as $1.0051 against the U.S. “The most proximate concern for markets is whether or not Nord Stream 1 is going to come back online,” said Bipan Rai, North American head of FX strategy at CIBC Capital Markets in Toronto, adding that “the markets will likely price in a recession” for the region if it doesn't. Governments, markets and companies are worried the shutdown might be extended because of the war in Ukraine. The biggest single pipeline carrying Russian gas to Germany, the Nord Stream 1 pipeline, began annual maintenance on Monday, with flows expected to stop for 10 days.

currency was boosted by expectations that the Federal Reserve will hike rates faster and further than peers. NEW YORK (Reuters) - The euro slid to a 20-year low and came closer to parity against the dollar on Monday on concerns that an energy crisis will tip the region into a recession, while the U.S.

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