© Reuters. Dollar pushes higher vs. rivals on U.S. rate hike hopes
Investing.com — The dollar extended gains against other major currencies on Monday, following upbeat remarks by the New York Federal Reserve President William Dudley to digest as the markets continue to weekend elections in Germany and new Zealand.
The greenback strengthened after Dudley said that the Fed is on course, gradually the interest rates given factors depressing inflation «fading» and the US economy are the foundations solid.
“I expect that inflation will rise and in order to stabilize the (Fed’s) 2% target in the medium term,» he said before adding that to remove «in response, the Federal Reserve is likely to continue monetary policy accommodation gradually.»
EUR/USD fell from 0.70% to 1.1874 after the German Federal election on Sunday showed the growing support for extreme right-wing party.
German Chancellor Angela Merkel won a fourth term on Sunday, but will have to build, to form a coalition government, as the Conservative support in the face of a rise in anti-immigration Alternative for Germany (AfD) is lost.
Earlier Monday, data showed that German business confidence edges lower in September. However, the reading remained close to the highest level on record, what are the dynamics in the euro-zone remains the largest economy.
GBP/USD stable at 1.3515, rebounding from the fashion loss rates held on the Friday after UK Prime Minister Theresa May, some new evidence was, how the Brexit will be continued.
May proposed a transition period of approximately two years after the UK leaves the European Union, during which time access to the single market to the current conditions.
According to may, the speech, Rating Agency Moody’s downgraded Britain’s credit rating of Aa2, upgraded to say the government’s plans to reduce the debt, had already knocked off course and Escape, a burden on the economy.
Elsewhere, USD/JPY rose 0.25% to 112.27 and USD/CHF gained 0.47% to 0.9739.
Also Monday, Japan’s Prime Minister Shinzo Abe called a snap General election, which will decide whether the country receives its massive economic stimulus. The vote is for October 22.
The Australian dollar was little changed, with AUD/USD at 0.7951, while the NZD/USD 0.90% moved to 0.7275 after no single party won a majority in the new Zealand election over the weekend.
The ruling National party won the votes of the greatest number, but neither of the major parties to win enough seats for a majority in Parliament, so that a round of coalition negotiations in the last days or weeks.
Meanwhile, USD/CAD 0.15% fell in the trade 1.2319.
The US dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.42% at 92.35 from 08:45 a.m. ET (12:45 GMT), the highest since September 21.