Greenback maintains strength as case hardens for a Fed rate lift
On Thursday, the greenback mostly maintained revenues against other key currencies, following its ascent on solid American economic indicators as well as the Federal Reserve policy gathering minutes that underpinned speculation for more rate hikes.
Strong American durable goods orders as well as consumer sentiment data on Wednesday spurred already heightened hopes that the Fed will keep tightening monetary policy just to prevent the economy from overheating.
Minutes from the Fed’s November gathering disclosed strength in major sectors of the American economy, thus hardening the case for a surge in short-term interest rates in December.
The currency pair EUR/USD traded at $1.0541, descending from $1.0549 late Wednesday in New York. Meanwhile, USD/JPY hit ¥112.83, rising from ¥112.45. As for the British pound, it showed $1.2431 against the greenback, down from $1.2441.
Some traders are getting skeptical as for the sustainability of the greenback’s advance in the near-term.