Dollar Unlikely to Fall Materially if Fed Dampens Rate-Rise Bets -- Market Talk

1505 GMT - The Federal Reserve could dampen rate-rise expectations in its decision at 1800 GMT, although any dollar selloff is likely to prove limited, Rabobank's Jane Foley says in a note. The Fed should lift rates by 25 basis points but risks are skewed towards the central bank undermining the market's conviction on rate increases going forward as too much policy tightening is priced into next year, she says. While the dollar could fall in the near-term, it's unlikely to come under heavy selling pressure given issues elsewhere including the U.K.'s limited fiscal headroom and the eurozone's energy importer status, she says. Rabobank expects the euro to trade near $1.16 in one to three months, compared to $1.1535 currently. (renae.dyer@wsj.com)

(END) Dow Jones Newswires

September 16, 2026 11:05 ET (15:05 GMT)