Dollar at Risk if Fed Signals Fewer Rate Hikes

The dollar strengthened early Wednesday, but TD Securities warns it could quickly weaken if the Federal Reserve raises interest rates as expected while signaling fewer future increases than markets anticipate. The Fed's "dot plot"—a chart showing where officials expect interest rates to go—will be key. If it points to a slower pace of rate hikes than investors expect, the dollar could face a sharp, short-lived drop.