Bullard: Fed likely to act in September
The US dollar remained near 3-month high at 98.147 after St. Louis Fed President James Bullard said on Monday that the Federal Reserve is likely to raise interest rates in September as inflation is set to climb toward its target and unemployment should fall below 5%. USD/JPY approached 124.50. EUR/USD is trading near the recent lows in the 1.0830/10 area.
NZD/USD rose and tested levels above 0.6600 after Prime Minister John Key said that the 25% decline of New Zealand’s currency in the past year was faster than expected. Earlier traders expected the Reserve Bank of New Zealand is still expected to cut rates when it meets Wednesday. Now these expectations have tempered.