ING: The dollar will remain strong, but further appreciation is limited

The dollar has held onto its recent gains, trading near a two-month high against a basket of currencies, and should remain strong after investors sharply reduced their expectations for U.S. rate cuts, though further appreciation is limited, Turner, an ABN AMRO foreign exchange analyst, said in a report. Data showed that U.S. money markets expect the Fed to cut interest rates by less than 50 basis points at its last two meetings this year and may not make further significant adjustments. The bank doubts that U.S. short-term interest rates will rise sharply from now on. (Jinshi)