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Forex

Dollar up, but on track for weekly loss

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The dollar wallowed close to eight-week lows against the euro on Friday, and was poised for weekly losses against its major counterparts, after minutes of the U.S. Federal Reserve’s July meeting revealed central bank policymakers are not going to hike rates soon.

At next week’s meeting of global central bankers at Jackson Hole, Wyoming, Fed Chair Janet Yellen is expected to reinforce the message that the Fed will raise interest rates later rather than sooner, which gave investors no incentive to buy the dollar.

Director at foreign exchange research firm Global-info Co in Tokyo, Kaneo Ogino said, “The market’s focus now is shifting to next week, the 26th, and what Yellen is going to say”.

The dollar index, which tracks the greenback against a basket of six major rivals, was down 1.4 per cent for the week, though it rose 0.2 per cent on Friday to 94.341. It had fallen as low as 94.077 on Thursday, its deepest since June 23.

Fed officials agree that more economic data is needed before raising interest rates, although they were generally upbeat about the U.S. economic outlook and labour market.

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Paul

The author Paul