Dollar Enjoys Steady Rates as Hopes Janet Yellen Hints on Interest Hikes
The speech made by the Federal Reserve Chairman Janet Yellen has spiked the interest of the investors. The Fed chair hinted that the time is appropriate for a hike in interest rates, as the economy is ‘moderately accommodative’. She was just short of announcing that the Fed will introduce a rate hike in March. The Fed meeting in the 14-15th of March will likely bring in positive news announcing the increase in interest rates. Experts hope that the rate will be fixed at 8.4%, after the hike. The expectations may change depending on the US economic and job data that will be released this week.
Despite hopes, the dollar did not gain greatly and in fact it lost against Yen in the past week. As mid-March approaches, the dollar has steadied in the market on Tuesday. The weekly US job data is also expected to help in increasing the currency value. The dollar index was trading at 101.22 on Monday and it increased to 101.65 on Tuesday.
Investors are holding back from making big moves, as they await the economic projections of the Fed and US job data. Even though an immediate hike is inevitable, investors still wonder, whether the interest rates will be increased three times in this year. Unlike the previous months, the dollar is not expected to gain steadily against the Yen in the range of 111 to 115 yen. Investors understood that the tax cuts, infrastructure spending and reforms will take a long time to implement.
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