The dollar hovered near a two-month high on Friday as Asian markets rallied and sentiment was buoyed by positive economic data and rising expectations for a compromise on the U.S. debt ceiling.

The MSCI’s broadest indexes of Asia-Pacific stocks ex-Japan was up 0.20% in bumpy trade and was expected to gain 0.6 percent for the week. Its best performance in over a month.

The S&P/ASX 200 index in Australia increased by 0.66%. While the Nikkei continued to rise and reached its highest level since August 1990. When Japan was allegedly in a stock market bubble.

Asian Stock Market Forecast

The likelihood that the Federal Reserve would lower interest rates before the end of the year is decrease by overnight data.

Since March 2022. The Fed has increased borrowing cost at each meeting, raising them from almost zero to a range of 5.00-5.25% as of this month’s first.

According to the CME Fed Watch tool. Market are now price in a 36% likelihood of a 25 basis point raise at the Fed meeting next month, up from a 10 percent chance a week earlier.