Us fed rate: Dollar rallies on Sept rate hike hopes

TOKYO: The dollar’s rally against the euro and yen hit a wall Monday, but it rose against other Asia-Pacific currencies on renewed speculation that the Federal Reserve will hike interest rates this month. Greenback demand picked up Friday after Boston Fed President Eric Rosengren said higher rates were needed to prevent the economy from overheating, while normally dovish Governor Daniel Tarullo also signalled his openness to a 2016 rate hike. “Rosengren’s comments were nothing new compared to remarks he’d made last month, but the fact they were repeated after the intervening US data run marked them out as significant,” National Australia Bank said in a commentary. Their remarks came a day after the head of the European Central Bank played down the chances of fresh stimulus, while Japanese officials have kept markets guessing on the chances of new measures.

Published in The Express Tribune, September 13^th, 2016.

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