U.S. Dollar Extends Rise Against Majors
December 18 2014 - 01:08AM
RTTF2
The U.S. dollar continued to advance against most major
currencies in the Asian session on Thursday after the Federal
Reserve stuck to its timeframe of hiking interest rates sometime in
the middle of 2015.
The Federal Reserve said Wednesday it will "be patient" in
determining when to raise interest rates, a subtle change in
language from its previous vow to keep rates near zero for a
"considerable time."
Nearly all Fed officials see a rate hike in 2015, but
policymakers think increases will be even more gradual than early
projections.
"Based on its current assessment, the Federal Open Market
Committee judges that it can be patient in beginning to normalize
the stance of monetary policy," the Fed said.
Addressing a post-decision press conference, Fed Chair Janet
Yellen said that the new language is not a change in policy, and
was only taken to reflect the improving economy.
On Wednesday, the U.S. dollar rose 2.15 percent against the yen,
0.91 percent against the Swiss franc, 1.34 percent against the euro
and 1.11 percent against the pound.
In the Asian trading today, the U.S. dollar rose to a 9-day high
of 0.9746 against the Swiss franc and a 3-day high of 118.99
against the yen, from yesterday's closing quotes of 0.9728 and
118.60, respectively. If the greenback extends its uptrend, it is
likely to find resistance around 0.98 against the Swiss franc and
122.00 against the yen.
Against the euro and the pound, the greenback edged up to 1.2319
and 1.5561 from yesterday's closing quotes of 1.2340 and 1.5572,
respectively. On the upside, 1.22 against the euro and 1.54 against
the pound are seen as the next resistance levels for the
greenback.
Looking ahead, Swiss SECO economic forecasts for December and
trade balance report for November are due to be released
shortly.
In the European session, German IFO business climate index for
December and U.K. retail sales data for November are due to be
released.
In the New York session, U.S. weekly jobless claims for the week
ended December 13, Flash U.S. Markit's services PMI for December,
leading indicators for November and Federal Reserve Bank of
Philadelphia's manufacturing index for December are due to be
released.
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