Dollar extends gains on US Fed boss rate-hike comments

AFP, TOKYO: The dollar added to its gains yesterday after Federal Reserve boss Janet Yellen suggested an interest rate hike this year was still on the table.
In a speech Friday at the annual Jackson Hole symposium of central bankers, Yellen said that the case for a US rate hike had “strengthened”, sharply boosting the greenback.
But she did not give a clear signal on the timing of a possible increase, leaving markets in limbo again over when the US central bank would move, analysts said.
Dealers are now awaiting non-farm payrolls data this week, with a strong reading expected to bolster the case that the world’s top economy could withstand a rise in borrowing costs, possibly this year.
“After a week of guessing, Yellen left little to the imagination when she stated that the case of a Fed rate hike had strengthened, but remained very much data dependent,” said Stephen Innes, senior trader at forex firm OANDA Asia Pacific.
“After all was said and done, we are still left pondering the most fundamental question, when will the Fed lift off.

Dollar extends gains on US Fed boss rate-hike comments

AFP, TOKYO: The dollar added to its gains yesterday after Federal Reserve boss Janet Yellen suggested an interest rate hike this year was still on the table. In a speech Friday at the annual Jackson Hole symposium of central bankers, Yellen said that the case for a US rate hike had strengthened, sharply boosting the greenback. But she did not give a clear signal on the timing of a possible increase, leaving markets in limbo again over when the US central bank would move, analysts said. Dealers are now awaiting non-farm payrolls data this week, with a strong reading expected to bolster the case that the worlds top economy could withstand a rise in borrowing costs, possibly this year. After a week of guessing, Yellen left little to the imagination when she stated that the case of a Fed rate hike had strengthened, but remained very much data dependent, said Stephen Innes, senior trader at forex firm OANDA Asia Pacific. After all was said and done, we are still left pondering the most fundamental question, when will the Fed lift off.