© Reuters. The dollar is near a peak of a year
Investing.com – The dollar rose on Thursday against a basket of currencies, to trade near the highs of a year after that the comments hawkish president of the federal Reserve have stressed the expectations of two further rate increases by the central bank this year.
The dollar index, which measures the greenback’s strength against a basket of six major currencies, was up 0.32% to 95,14 at 04:22 AM (08:22 AM GMT), near a high of eleven months 95.25 reached at the end of June.
The demand for the dollar continued to be underpinned after Fed chairman has offered an optimistic assessment of the u.s. economy in testimony to Congress Tuesday and Wednesday, and has minimized the impact of uncertainty on the commercial policy of the United States.
The dollar rose against the yen, with USD / JPY up 0.13% to trade at 113.00, near a six-month peak of 113.13.
The euro has been put under pressure by the stronger dollar, with EUR / USD down 0.26% to 1,1609.
The pound reached a low of 10 months versus the u.s. currency, with a decline of 0.34% to 1,3025.
The pound sterling was under pressure on Wednesday, when the data on inflation in the United Kingdom have reduced the chances of a rate hike in August by the Bank of England.
The pound Sterling has also been hit by a new wave of uncertainty related to the Brexit. The new minister Theresa May has been criticised by both sides of the conflict related to the Brexit as to his exit strategy of the european Union.
The british pound was also down against the euro, with EUR / GBP up 0.1% to 0,8915, not far from a peak of four months of 0,8931 reached Wednesday.
During this time, the chinese yuan fell to a new low a year against the dollar, worries about trade tensions continuing to strengthen.
The currency, which is usually tightly controlled by Beijing, declined to 6.7985.
This decline has led to speculation that the chinese authorities allow their currency to weaken in order to compensate for the impact of the us tariff, by making their exports more competitive.