Dollar on Record High Before Reports


The U.S. dollar reached the highest rate in more than 2 months as a speculations regarding a series of reports to be released today indicate that favorable numbers will help the Federal Reserve to lift stimulus measures raising attractiveness for assets in the world’s wealthiest nation.

Speculations regarding interest rates continue to fuel a dollar rally that made it climb from the lowest rate in 15 months two weeks ago to the highest price in more than two months, as positive economic data in the United States would provide support for the Federal Reserve to raise borrowing costs in the country during the following months, from a current level near zero. The Australian dollar fell against its U.S. counterpart as policy makers are less hawkish to continue a series of rate hikes that set the Aussie to rank among the top 3 best currencies performers in 2009.

The dollar is likely to gain versus the euro and higher-yielding options as long as optimism regarding interest rates continues strong among traders. If economic stimulus are lifted by the Fed as expected, if will fuel even further a dollar rally versus most of the main traded currencies.

EUR/USD traded at 1.4533 as of 12:58 GMT from a previous rate of 1.4651 yesterday. AUD/USD dropped to 0.9060 from 0.9172 twelve hours ago.

by topnewforex.com
8:21 AM

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