"Reuters" declare : Dollar jumps as Fed interest rate hike seen nearer

collected by :John Miller

New York Fed President William Dudley, a permanent voter on the U.S. central bank's open market committee, said the case for tightening monetary policy "has become a lot more compelling." That's where the dollar has been taking cues from," said Vassili Serebriakov, foreign exchange strategist at Credit Agricole in New York. A man counts U.S dollars and Euros at a money exchange office in central Cairo, Egypt, December 27, 2016. "The currency was already falling to start with, and that kind of played into the move," Credit Agricole's Serebriakov said. Fed Chair Janet Yellen and Vice Chair Stanley Fischer are both due to speak on Friday.


referring to The benchmark 10-year Treasury yield was also close to a two-week high, last standing at 2.461 per cent.However, some analysts warned that the dollar could weaken despite the widening interest rate differentials should stocks retreat. The greenback reached a two-week high of 114.16 yen earlier in the day.A widening of US-Japan interest rate differentials helped the dollar, as US Treasury yields jumped on an increased prospect for a March rate hike.The US two-year yield hovered near a more than seven-year high of 1.308 per cent touched on Wednesday. "Investors liked that Trump was behaving well during his speech although it lacked specifics in policies," said Daiwa's Ishizuki.Against its Japanese counterpart, the dollar was up 0.3 per cent at 114.04 yen. "If the Fed goes ahead with a faster pace of rate hikes and shrinks its balance sheet , it will weigh on stock prices," said Minori Uchida, chief FX analyst at Bank of Tokyo Mitsubishi UFJ. The index climbed to 101.97 on Wednesday, its highest since Jan. 11.On Tuesday, two influential Fed policymakers, William Dudley and John Williams, encouraged dollar bulls with comments that suggested rate-setters are worried about waiting too long in the face of pending economic stimulus from Washington.


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FOREX-Dollar at near 7-week high as markets brace for possible March Fed rate hike

Federal Reserve Governor Lael Brainard said late on Wednesday an improving global economy and a solid U.S. recovery mean it will be "appropriate soon" for the Fed to raise rates. Against Japan's currency, the dollar was up 0.3 percent, hitting a fresh a two-week high of 114.16 yen . [nL2N1GE03R] "The Fed is likely to raise interest rates this month unless the U.S. jobs data due next week is bad," said Yukio Ishizuki, FX strategist at Daiwa Securities in Tokyo. [nL2N1GE1AN] Sterling sank to a six-week low of $1.2881 on Wednesday as disappointing economic data added to political nerves that have begun to weigh on the currency again after last year's Brexit vote. [nL2N1GE246] The dollar index, which measures the greenback against a basket of six major currencies, was fetching 101.87 <.DXY>.




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