x
SCOTTRADE ACCOUNT IT'S TIME. It's time for an easier way to invest. Open a Scottrade Account
Apply Now

Dollar poised for weekly gain after Fed officials signal rate hikes

ForexMar 24, 2016 11:10PM ET
 
© Reuters. A U.S. one-hundred dollar bill and Japanese 10,000 yen notes are spread in Tokyo

By Lisa Twaronite

TOKYO (Reuters) - The dollar was on track on Friday for a weekly gain of over 1 percent against a basket of currencies after a chorus of U.S. Federal Reserve officials signaled more interest rate increases than the market had been pricing in.

The latest was St. Louis Fed President James Bullard, who said on Thursday that another U.S. interest rate hike "may not be far off" and noted labor market improvement.

"There's not a lot that will come" in terms of data before the U.S. central bank's April 26-27 policy meeting, Bullard told reporters. "I'd like to be confident that inflation expectations are stabilizing, and hopefully increasing."

This week's hawkish remarks followed the central bank's March meeting last week, in which the Fed halved its rate hike expectations to two from four for this year.

Trading globally was likely to be thin, with many key markets, including Australia, the UK and the United States, closed to observe Good Friday. Some will be closed Monday as well after Sunday's Easter holiday.

The dollar index, which tracks the greenback against a basket of six rival currencies, added about 0.2 percent to 96.285 (DXY). It was poised to rise 1.3 percent for the week, its first such gain this month.

The dollar edged up 0.1 percent against the yen to 113.04 <JPY=>. It was up 1.3 percent for the week and well above last week's 17-month low of 110.67 yen.

"The 114 yen handle will come in view for the dollar if next week's U.S. data show a good pace of job growth, stronger inflation and a bottoming out of manufacturing sector sentiment," said Masafumi Yamamoto, chief FX strategist at Mizuho Securities in Tokyo.

A batch of U.S. indicators are scheduled to be released next week, such as Monday's core personal consumption expenditures price (PCE) index, Thursday's Chicago purchasing management index (PMI) and Friday's non-farm payrolls report.

Data earlier on Friday showed that Japan's consumer inflation was flat in the year to February as low energy costs and weak consumption put a lid on price growth, keeping pressure on the Bank of Japan to add more stimulus even after easing policy less than two months ago.

The euro slipped 0.1 percent to $1.1162 <EUR=>, below last week's one-month peak of $1.1342. It was on track to lose 0.9 percent in a week marred by attacks on Brussels for which Islamic State claimed responsibility.

The attacks added to pressure on sterling and sent it to its weakest trade-weighted basis in two years on fears that British voters would decide at a poll in June to leave the European Union.

Sterling was last down 0.3 percent at $1.4113 <GBP=>, on track for a 2.5 percent loss on the week.

Dollar poised for weekly gain after Fed officials signal rate hikes
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Add Chart to Comment
USDollar
 
 
Are you sure you want to delete this chart?
 
 
Replace the attached chart with a new chart ?
Post 1000
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
 
Replace the attached chart with a new chart ?
Post 1000
 
 
 
Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data .

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.