Dollar Rises Against Major Counterparts On Rate Hike Bets
(RTTNews) - The U.S. dollar climbed higher against its major rivals on Friday, lifted by expectations the Federal Reserve will continue to hold interest rates higher for more time.
Data showing an improvement in consumer sentiment, and a rebound in near-term inflation expectations supported the dollar.
Data released by the University of Michigan this morning showed U.S. consumer sentiment saw a continued improvement in February. The report showed the consumer sentiment index rose to 66.4 in February from 64.9 in January. Economists had expected the index to inch up to 65.0.
The consumer sentiment index increased for the third straight month, reaching its highest level since hitting 67.2 in January 2022.
Meanwhile, one-year inflation expectations climbed to 4.2% in February from 3.9% in January, with expectations rebounding after falling for three straight months.
Richmond Fed President Thomas Barkin said it's important for the U.S. central bank to continue to raise rates to ensure it brings inflation back to the 2 percent target.
The dollar index surged 103.68 before easing slightly to 103.59, still up 0.36% from the previous close.
Against the Euro, the dollar firmed to 1.0680 from 1.0743.
The dollar strengthened to 1.2060 against Pound Sterling, gaining from 1.2121.
Against the Japanese currency, the dollar eased marginally to 131.38 yen.
The dollar is trading at 0.6917 against the Aussie, rising 0.3%. Against Swiss franc, the dollar advanced to CHF 0.9238 from CHF 0.9222. Against the Loonie, the dollar firmed to C$ 1.3445 from C$ 1.3359.
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