Dollar Gains Momentum in the Forex Market as Hope for Fed Interest Hike Increases
By Anatol Thomas
The US dollar gained steadily against the basket of other foreign currencies, as the US Treasury yields continue to raise. The Federal Reserve is expected to increase the interest rates in the upcoming days and this has resulted in the dollar increasing again in the market.
The announcement made by the Fed Chair Janet Yellen indicated that the Federal Reserve will announce a rate hike, after its March meeting. The announcement is expected any minute, by the end of Tuesday or Wednesday. The investors want to wait and follow the message that will be communicated by the Fed. The two-day meeting is expected to bring some good news to the market.
In the previous year, Fed has announced that there will be three interest rate hikes in 2017. Recent economic condition indicates that the Fed will in fact increase the interest rate four times in this year. This has helped the dollar to gain momentum in the forex market, as the yields are expected to increase. The hawkish dot plot helps the dollar to beat other currencies. The dollar index gained 0.1%, which further added to the gains of the currency. It also continues to gain against the Yen, as it reached 114.950 Yen.
Euro on the other hand decreased slightly, as it was trading at a higher value in the market. The European Central Bank has announced that there will be no upcoming policy change. Euro lost 0.1%, as it traded at $1.0647, going down from $1.0714.
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