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Greenback's rise could scupper further rate hikes, fund managers warn

Flurry of research notes question likely success of rate rises given continuing strength of US currency

Greenback's rise could scupper further rate hikes, fund managers warn

As the US dollar edged higher overnight, following the Federal Reserve’s decision to raise interest rates, strategists warned that the growing strength of greenback could put a stop to future rate hikes.

The Fed has hiked its funding range by 25 basis points to between 25 and 50 basis points. Market participants expect two more hikes to between 75 and 100 basis points this cycle, although some investors are forecasting four.

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