The US dollar touched a seven-week high against a currency-major currencies on Thursday (19/05) early this morning until this morning, right after the Federal Reserve signaled that interest rate increases could occur as soon as possible in June.
The Fed is expected to raise interest rates in June if economic data showed US economic growth in the second quarter was stronger, in line with rising inflation and employment, as is written in the minutes of the Fed's meeting which was held in late April.
The Market Expects more Hawkish
The market is also already foresees a rise in interest rates again by the Fed this year, but referring to the US inflation data slick yesterday, comments from a number of policy makers of the Fed, as well as the minutes of the FOMC meeting released last night ended up directing all analysts to the view that there will be tightening policy soon.
One of the analys is Jim Paulsen, told Reuters, Chief Expert of Investment Strategy at Wells Capital Management Minneapolis, said, "I think this is the time (potentially) high for the Fed begin normalizing policy. We have tried (easing) for seven year, let's try something new. When the Fed showed confidence, could the private sector will do the same thing. "
The US Dollar Index, which measures the strength of the greenback against the currencies-the other major currencies, rallied to its highest level since the end of March so the opportunity arose rate hike soon.
Yen went down to 0.99 per cent against the US dollar to hit a 110.20 per dollar while the euro drop to 0.85 percent to $ 1.1215 figure. US crude oil prices had come down as much as 0.9 percent to $ 47.90 figure, as well as with the price of gold. USD / CAD fueled rise towards 1.3037 figures from before the minutes of the rise in the number 1.2894.
 |
The US Dollar Skyrocketed Post-Signal 'Fed Hike' In FOMC Minutes
|
