Fed’s Dollar Gauge Hits 14-Year High Before Fed’s Minutes: Chart

(Bloomberg) -- The Federal Reserve's trade-weighted dollar index, a gauge of the U.S. currency versus 26 of the country's biggest trading partners, rose to the strongest level since October 2002 before the release Wednesday of the Fed's November policy meeting minutes. Although the market-implied odds of a move at the central bank's Dec. 13-14 meeting have reached 100 percent, the surge in the dollar may prove to be a red flag due to its potential to hurt exports and lower inflation.

To contact the reporter on this story: Yun Li in New York at yli934@bloomberg.net. To contact the editors responsible for this story: Boris Korby at bkorby1@bloomberg.net, Paul Cox, Sophie Caronello