NEW YORK: Suggestions from a senior Federal Reserve official that the bank could soon tighten monetary policy sent the dollar higher against the yen and other currencies on Tuesday. The dollar rose to 82.48 yen at 2130 GMT on Tuesday, from 81.71 yen the day before. The dollar got a boost from St. Louis Federal Reserve President James Bullard, who speaking in Prague, said the US could not keep its very loose monetary policy forever. Bullard also suggested that the Fed could cut short its exceptional measures to help the world's largest economy, stopping at $100 billion below the $600 billion target of its bond-buying program known as quantitative easing.
"St. Louis Fed President James Bullard set off a flurry of USD/JPY buying in early North American trade when he suggested that the Fed may curtail its QE program early," said Boris Schlossberg fo GFT. The dollar stood at 0.9201 Swiss francs (0.9161). Expectations that the European Central Bank will next week raise its benchmark interest rate propped up the single European currency, despite concerns about debt problems in several eurozone countries. The European single currency rose to $1.4110 from $1.4092 late on Monday. The pound rose to $1.6007 from $1.5996 the day before.
Comments
Comments are closed for this article.