© Reuters. Dollar 1-month highs, as a political risk press euro
Investing.com — The dollar has been supported in one-month highs against a basket of other major currencies on Wednesday, by the comments of Federal Reserve chair Janet Yellen and as the political risks continue to put pressure on the euro.
The US dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.41% 93.19 03:37 PM ET (07:37 GMT), the highest since August 31.
The demand for the dollar continued to be underpinned after the Yellen said on Tuesday that the Fed must continue with gradual interest rate hikes, despite the uncertainty about the inflation Outlook.
The remarks came after the Fed indicated last week that they would be happy to increase interest rates once more this year and three times in the year 2018.
Higher prices support the dollar, by searching the U.S. currency more attractive to yield-seeking investors.
The dollar was also boosted by the generally weaker euro remained on the defensive in the Wake of Sunday’s Bundestag election results.
EUR/USD was down 0.37% to a five-week low of 1.1748.
German Chancellor Angela Merkel won the elections, but the large numbers of voters desert saw their party for the right.
Merkel is now in negotiations months ago, the coalition to try to form a stable government, investors leave worried that the political uncertainty could make it difficult to beat the German economy closer to the euro-zone integration.
The euro was steady against the yen, with EUR/JPY at 132.48.
The dollar more and more against the Japanese currency, with USD/JPY advancing 0.45% to 112.76, recovered from Tuesday’s low of 111.49.
Elsewhere, sterling was lower against the stronger dollar, with GBP/USD down 0.56% at 1.3380.
The pound was also a little lower against the euro, with EUR/GBP rising 0.18% to 0.8779.
The investors were with a view to the announcement of a tax plan by the U.S. administration in Congress later in the day, together with a report on the U.S. durable goods orders.