Dollar Gains Against Major Counterparts As Rate Hike Prospects Rise
(RTTNews) - The U.S. dollar firmed against its major rivals on Wednesday, after Federal Reserve Chair Jerome Powell's speech at the European Central Bank Forum in Sintra.
Powell said he would not rule out two consecutive rate hikes at the central bank's upcoming meetings.
Saying that a 'strong majority' of policymakers favour two more rate hikes this year, Powell added, "If you look at the data over the last quarter, what you see is stronger than expected growth, a tighter than expected labor market and higher than expected inflation."
"That tells us that although policy is restrictive, it may not be restrictive enough and it has not been restrictive for long enough. We have only made a decision about the June meeting, but I wouldn't take moving at consecutive meetings off the table at all," the Fed chief added.
The dollar index surged to 103.15, before easing to 103.00, still staying up with a gain of nearly 0.5%.
Against the Euro, the dollar is up at 1.0912, firming from 1.0961. Against Pound Sterling, the dollar has strengthened to 1.2637 from 1.2751.
The dollar is stronger against the Japanese currency, fetching 144.52 yen a unit, compared with 144.07 yen on Tuesday.
The Aussie is weak with the AUD/USD trading at 0.6602. The dollar is firm against Swiss franc at CHF 0.8970, and against the Loonie, it is up at C$1.3260, gaining from C$1.3195.
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