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2016.10.2723:07:00UTC+00U.S. Dollar Climbs on Interest Rate Optimism

The dollar is on course to reach its highest level since March while investors remain optimistic that the Federal Reserve will raise U.S. interest rates by year-end. The WSJ Dollar Index climbed 0.4 percent to 88.96.

The dollar was pulled up by optimism of an interest rate hike in December. Fed-funds futures have shown that investors implied a 78.5 percent chance of a rate hike at the Fed's December meeting, according to CME Group data. Investors are currently watching economic data for indications that the U.S. economy is upbeat enough to handle higher rates.

The pound fell 0.6 percent to $1.2173. The currency previously rallied earlier in the day after prior data has shown that the U.K. economy grew at a faster-than-expected rate during the third quarter.

Tags: USD
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