US dollar strengthens as traders bet on hawkish Fed, gold falls

NEW YORK: The US dollar appreciated in late trading on Thursday as market participants digested the latest comments from Federal Reserve officials, reported Xinhua.

The dollar index, which measures the greenback against six major peers, increased 0.39 per cent to 106.6930.

In late New York trading, the euro decreased to US$1.0368 from US$1.0394 in the previous session, and the British pound was down to US$1.1851 from US$1.1913 in the previous session.

The US dollar bought 140.23 Japanese yen, higher than 139.34 Japanese yen of the previous session.

The US dollar increased to 0.9520 Swiss francs from 0.9441 Swiss francs, and it rose to 1.3331 Canadian dollars from 1.3329 Canadian dollars.

The US dollar increased to 10.6177 Swedish Kronor from 10.4822 Swedish Kronor.

St. Louis Fed President James Bullard said Thursday that the central bank still has a lot of work to do given that its tightening so far “had only limited effects on observed inflation”.

He said the Fed’s policy rate will need to be increased further to a level high enough to bring inflation down.

San Francisco Fed President Mary Daly said Wednesday that somewhere between 4.75 per cent and 5.25 per cent seems a reasonable place to think about for the level to which officials should raise rates.

Earlier this month, the Fed raised interest rates by 75 basis points for the fourth consecutive meeting, setting the federal funds target range between 3.75 per cent and 4 per cent.

In Chicago, gold futures on the COMEX division of the New York Mercantile Exchange fell on Thursday as the US dollar strengthened.

The most active gold contract for December delivery fell US$12.8, or 0.72 per cent, to close at US$1,763 per ounce.

Gold was under additional pressure as US Labour Department reported Thursday that US initial jobless claims dropped 4,000 to a seasonally adjusted 222,000 for the week ending Nov12, lower than 225,000 claims forecast by economists.

Silver for December delivery fell 54.9 cents, or 2.55 per cent, to close at US$20.975 per ounce.

Platinum for January delivery fell US$24.7, or 2.43 per cent, to close at US$991.5 per ounce. —