US Dollar Rallies as Fed Expectations Override Oil Drop: ING

The US Dollar continues to strengthen, buoyed by robust economic data and market expectations of further Federal Reserve tightening, ING strategists Francesco Pesole, Chris Turner, and Frantisek Taborsky write.

This rally comes despite a significant drop in oil prices, which typically weighs on the dollar. The analysts note that the Fed focus is currently offsetting the negative impact from lower crude.

Strong US data points reinforce the case for sustained monetary policy tightening, keeping the dollar supported against major peers.