Dol­lar rises af­ter Fed of­fi­cial's rate hike com­ment

The Pak Banker - - INTERNATIONAL BUSINESS/SPORTS -

The dol­lar rose against the euro and yen in Asia Wed­nes­day, adding to gains driven by a US Fed­eral Re­serve of­fi­cial s sup­port for a Septem­ber in­ter­est rate hike.

In Tokyo, the dol­lar fetched 124.45 yen, against 124.36 yen in New York and 123.98 yen in Tokyo ear­lier Tues­day. The euro edged down to $1.0863 and 135.19 yen from $1.0882 and 135.32 yen in US trade.

On Tues­day, the dol­lar ad­vanced against other ma­jor cur­ren­cies af­ter Fed Re­serve Bank of At­lanta Pres­i­dent Dennis Lock­hart told The Wall Street Jour­nal that he sup­ports lift­ing rates in Septem­ber bar­ring an un­ex­pected down­turn in the world s top econ­omy. Lock­hart told the pa­per it "will take a sig­nif­i­cant de­te­ri­o­ra­tion in the eco­nomic pic­ture for me to be dis­in­clined to move ahead".

Cur­rency traders are keep­ing a close eye on US eco­nomic data as they try to gauge the timeline for a rate hike -- a plus for the dol­lar -- which is widely ex­pected in Septem­ber or De­cem­ber. Jobs data at the end of the week are now in fo­cus.

"Our call all year has been for the Fed to start a very grad­ual rate hike cy­cle from Septem­ber," Cal­lum Hen­der­son, the global head of for­eign-ex­change re­search at Stan­dard Char­tered, told Bloomberg News. "The Lock­hart com­ments added to dol­lar gains by putting this prospect back on the mar­ket s radar."

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