The US dollar moved higher in Wednesday (16/12) this morning following the US bond yields which bounced higher ahead of US rate hike decision is increasingly close. Most market estimates that the US Federal Reserve will soon raise interest rates for the first time after eight years after the global financial crisis.
Discourse of the Fed's interest rate hikes is already in anticipation of the market since last year, so now investors are more keen to interpret how fast the US Central Bank in tightening policy starting from the initial decision. According to Ray Attrill, Chief Forex Strategist at National Australia Bank, if the earlier investors can only wait without being able to do anything, then now is the time to make decisions.
Stronger dollar
The US dollar index is at position 98 144, got a 0.6 percent gain since Tuesday. Against the yen, the greenback jumped above 121.50, off a low of 120.35 levels. Meanwhile, EUR / USD traded near 1.0900 after earlier hitting a seven-week peak 1.1060 figure.
Major currencies were weaker against the US Dollar today is the Australian dollar. AUD / USD goes down below the 0.72 level from the high level of 0.7283 yesterday. Traders are looking for a reason to sell the Aussie them after comments RBA Governor, Glenn Stevens, who said that he wants a weaker currency to boost Australia's commodity sales.
According to analysts from RB Paribas, USD weakening US - seen from the current position - appears to slowly diminish. The US dollar is now in an attractive level-currency versus other major currencies. Contrary to previous estimates, the Dollar is expected to be strengthened after the announcement of the tight monetary policy of the Fed tomorrow.
Discourse of the Fed's interest rate hikes is already in anticipation of the market since last year, so now investors are more keen to interpret how fast the US Central Bank in tightening policy starting from the initial decision. According to Ray Attrill, Chief Forex Strategist at National Australia Bank, if the earlier investors can only wait without being able to do anything, then now is the time to make decisions.
Stronger dollar
The US dollar index is at position 98 144, got a 0.6 percent gain since Tuesday. Against the yen, the greenback jumped above 121.50, off a low of 120.35 levels. Meanwhile, EUR / USD traded near 1.0900 after earlier hitting a seven-week peak 1.1060 figure.
Major currencies were weaker against the US Dollar today is the Australian dollar. AUD / USD goes down below the 0.72 level from the high level of 0.7283 yesterday. Traders are looking for a reason to sell the Aussie them after comments RBA Governor, Glenn Stevens, who said that he wants a weaker currency to boost Australia's commodity sales.
According to analysts from RB Paribas, USD weakening US - seen from the current position - appears to slowly diminish. The US dollar is now in an attractive level-currency versus other major currencies. Contrary to previous estimates, the Dollar is expected to be strengthened after the announcement of the tight monetary policy of the Fed tomorrow.
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