The dollar marched higher on Friday against other major currencies, buoyed by improvement in US data and signs that the Federal Reserve is not bothered about deflation.
Euro currency NEW YORK: The dollar marched higher on Friday against other major currencies, buoyed by improvement in US data and signs that the Federal Reserve is not bothered about deflation.
At 2100 GMT the euro was trading at $1.2834, down from $1.2881 late Thursday.
The dollar rose to 103.19 yen, from 102.25, while the euro pushed to 132.44 yen from 131.74.
The British pound fell to $1.5176 from $1.5266, and the dollar pushed to 0.9716 Swiss francs from 0.9647 francs.
Friday’s gains came on the heels of a rise to 83.7 of the University of Michigan index of consumer sentiment, the highest number since 2007. Also, the Conference Board’s index of leading US economic indicators jumped by 0.6 percent in April.
Also encouraging dollar buyers were comments from John Williams, head of the San Francisco branch of the Federal Reserve and close in thinking to Fed chief Ben Bernanke.
In a speech late Thursday Williams said that the Fed could begin tightening monetary policy — by cutting asset purchases — as soon as this summer.
“Then, if all goes as hoped, we could end the purchase program sometime late this year,” he said.
Even so, he added to stem worries of a radical tightening, “the stance of monetary policy would still be extremely stimulatory.”
Williams also suggested the Fed was not worried about deflation, after a series of data this week showed a clear fall in producer and consumer prices.
He said he expects prices to rebound, but not so much that inflation will reach the two percent longer-run target over the next few years.
“As of yet, policymakers seem rather apathetic to the low inflation readings. Apparently even lower numbers are needed to capture their attention,” said University of Oregon economist Tim Duy.
Source AFP
Đăng ký: VietNam News
