US dollar strengthens as traders bet on hawkish Fed

US dollar strengthens as traders bet on hawkish Fed

NEW YORK, Nov. 17 (Xinhua) — The U.S. dollar appreciated in late trade Thursday as market participants digested the latest comments from Federal Reserve officials.

The dollar index, which measures the greenback against six major peers, rose 0.39 percent to 106.6930.

In late New York trading, the euro fell 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 from the previous session. The US dollar rose 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 SEK 10.6177 from SEK 10.4822.

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 “has had only limited effects on observed inflation.”

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

San Francisco Fed President Mary Daly said on Wednesday that somewhere between 4.75 percent and 5.25 percent seems like a reasonable place to think about 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, putting the federal funds target range between 3.75 percent and 4 percent.





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