Dollar firms on Fed rate hike speculation

AFP, TOKYO: The dollar rose yesterday in Asian trade on renewed hopes for a possible US rate hike this year following hawkish comments from the vice chairman of the Federal Reserve.
The greenback moved higher against major currencies after Stanley Fischer said Sunday that the US central bank was close to meeting its targets, outlining a bright outlook for the world’s largest economy.
He argued that core inflation was within “hailing distance” of the bank’s two per cent  target while employment had increased “impressively” since its low point in early 2010.
The comments cheered investors, who are now shifting their focus to Fed boss Janet Yellen’s speech this week in Jackson Hole, Wyoming, where global central bankers will congregate for an annual symposium.
“Janet Yellen’s speech on Friday will have the biggest impact on short-term market moves, especially if she follows in Stanley Fischer’s relatively hawkish tone,” Angus Nicholson, a market analyst at IG Ltd, told Bloomberg News.
“A week of talking up the US dollar will be good for US financial stocks that would benefit from a rate rise and some of that positivity could spread over into financials globally,” he said.

Dollar firms on Fed rate hike speculation

AFP, TOKYO: The dollar rose yesterday in Asian trade on renewed hopes for a possible US rate hike this year following hawkish comments from the vice chairman of the Federal Reserve. The greenback moved higher against major currencies after Stanley Fischer said Sunday that the US central bank was close to meeting its targets, outlining a bright outlook for the worlds largest economy. He argued that core inflation was within hailing distance of the banks two per cent target while employment had increased impressively since its low point in early 2010. The comments cheered investors, who are now shifting their focus to Fed boss Janet Yellens speech this week in Jackson Hole, Wyoming, where global central bankers will congregate for an annual symposium. Janet Yellens speech on Friday will have the biggest impact on short-term market moves, especially if she follows in Stanley Fischers relatively hawkish tone, Angus Nicholson, a market analyst at IG Ltd, told Bloomberg News. A week of talking up the US dollar will be good for US financial stocks that would benefit from a rate rise and some of that positivity could spread over into financials globally, he said.