"Historically, the first hike has often led to the dollar losing some of its strength. Whether we see dollar weaken this time round, though, is a question mark, since other central banks will probably take a while longer before they start to raise interest rates," said head of fixed income at GAM in Zurich, Enzo Puntillo.
Fund managers polled by the Bank of America Merrill Lynch said long dollar was the most crowded trade in markets earlier this month, with the greenback trading close to an 8-month peak against a basket of currencies this week, ahead of the possible move from the Fed next month.
The big number markets are waiting for is the November employment report on December 4, after October's report of 271,000 nonfarm payrolls and a surprise pickup in wages. That report will have direct bearing on the Fed's rates decision December 16.
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