Dollar remains broadly higher amid Fed speculation
Investing.com — The U.S. dollar held to gains against other major colleagues on Tuesday, as speculation about who will replace Janet Yellen at the helm of the Federal Reserve lent support to the greenback.
The greenback strengthened to be replaced by the reports on Monday, US President, Donald Trump was in favor of the Stanford economist John Taylor, the Federal Reserve chair Janet Yellen in the next year. Taylor is more than radical, as it is the current Yellen.
The US dollar was also supported after Fed chair Yellen said on Sunday that the economy remains strong and the strength of the labour market calls for more gradual increases in the interest rates despite the soft inflation.
EUR/USD slid 0.25% to 1.1766 after data showed that German economic sentiment rose much less than expected in October.
Elsewhere, the pound was stable at 1.3263 after data showed that UK inflation to a five-and-a-half-year high in September.
The yen was also steady, with USD/JPY at 112.15, while USD/CHF dipped 0.17% edged higher 0.9772.
The Australian dollar was little changed, with AUD/USD 0.7856, while the NZD/USD added 0.14% to trade 0.7179.
Statistics New Zealand reported Tuesday that consumer prices increased by 0.5% in the third quarter, beating expectations for a 0.4% gain.
Compared to the previous year, consumer prices rose by 1.9% in the three months to September, compared to expectations for a 1.8% gain.
At the same times, the minutes of the Reserve Bank of Australia October, showed that monetary-policy meeting, that the political decision-makers are in no hurry to raise interest rates.
«Members observed that moves in the direction of higher interest rates in other countries, were a welcome development, but it is not the mechanical impact on the setting of the policy in Australia,» the report said.
Meanwhile, the Canadian dollar was lower, with USD/CAD up 0.13% at 1.2534.
The US dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.17% to 93.30 of at 05:15 ET (09:15 GMT), the highest level since October 10.