WEB COMMENT-Stronger Harris footing may see dollar shoe drop
Stronger Harris footing may see dollar shoe drop
Aug 15 Reuters - The dollar could weaken if the probability of a Federal Reserve rate hike in September increases, analysts said on Monday, as a stronger U.S. currency would make it more expensive for other countries to buy American goods.
Key points
- The dollar index rose 0.2% to 93.195, after hitting its highest since July 19 at 93.444 in the previous session.
- The euro was down 0.2% at $1.1749, having hit a one-week low of $1.1733.
- The Japanese yen was down 0.1% at 109.46 per dollar, having hit a one-week low of 109.66.
Dollar index holds near 1-month high
Analysts said the dollar index could continue to rise in the near term if the Fed signals a more hawkish stance at its policy meeting on Sept. 20-21.
A stronger dollar would make it more expensive for other countries to buy American goods, which could weigh on the U.S. trade deficit.
Euro, yen weaken
The euro fell against the dollar on Monday, as investors awaited the European Central Bank's policy meeting on Thursday.
The ECB is widely expected to keep its main interest rates unchanged, but investors will be watching for any hints about the bank's plans to start tapering its bond-buying program.
The Japanese yen also weakened against the dollar on Monday, as investors sold the safe-haven currency in favor of riskier assets.
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