U.S. Dollar Climbs On Fed Rate Hike Hopes
February 17 2023 - 03:42AM
RTTF2
The U.S. dollar appreciated against its major counterparts in
the European session on Friday, on hopes of additional interest
rate increases in the wake of strong U.S. economic data and hawkish
comments from Federal Reserve officials.
Fed officials James Bullard and Loretta Mester warned that the
central bank could raise interest rates at a sharper pace in the
coming months, if inflation remains sticky.
Fed President Loretta Mester said there is need for more
tightening to lower inflation back to the Fed's 2 percent
target.
Separately, St. Louis Fed President James Bullard argued that
there was a good case for the Fed to have been more aggressive with
its recent rate decision.
The dollar index surged to a 1-1/2-month high of 104.67.
The greenback firmed to near a 2-month high of 135.12 against
the yen and a fresh 5-week high of 0.9332 against the franc, from
its early lows of 133.92 and 0.9245, respectively. The next
possible resistance for the currency is seen around 139.00 against
the yen and 0.94 against the franc.
The greenback climbed to 1-1/2-month highs of 1.0613 against the
euro and 1.1915 against the pound, off its early lows of 1.0676 and
1.1994, respectively. The greenback is seen finding resistance
around 1.05 against the euro and 1.18 against the pound.
The greenback appreciated to 1-1/2-month highs of 0.6811 against
the aussie, 0.6194 against the kiwi and 1.3537 against the loonie,
reversing from its early lows of 0.6880, 0.6257 and 1.3445,
respectively. The greenback may locate resistance around 0.66
against the aussie, 0.60 against the kiwi and 1.37 against the
loonie.
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