U.S. dollar rises amid hawkish central bank signals
Dec 17, 2022
New York [US], December 17: The U.S. dollar moved higher in late trading on Friday as market participants digested statements from major central banks.
The dollar index, which measures the greenback against six major peers, rose 0.14 percent to 104.7030, following a 0.76 percent jump in the prior session.
In late New York trading, the euro fell to 1.0602 U.S. dollars from 1.0634 dollars in the previous session, and the British pound was down to 1.2169 U.S. dollars from 1.2190 U.S. dollars in the previous session.
The U.S. dollar bought 136.58 Japanese yen, lower than 137.73 Japanese yen of the previous session. The U.S. dollar increased to 0.9333 Swiss francs from 0.9282 Swiss francs, and it was up to 1.3690 Canadian dollars from 1.3650 Canadian dollars. The U.S. dollar rose to 10.3966 Swedish Kronor from 10.3259 Swedish Kronor.
The European Central Bank (ECB), Swiss National Bank (SNB), and Bank of England (BoE) all raised rates by 50 basis points on Thursday, following a similar move by the Federal Reserve on Wednesday.
ECB President Christine Lagarde said that rates will "still have to rise significantly and at a steady pace," and signaled that the ECB would hike its key rate further than the market is currently pricing in.
SNB Chair Thomas Jordan said it is too early to "sound the all-clear" on high inflation, and further rate rises "cannot be ruled out." The BoE also warned of the need for further rate increases.
Source: Xinhua
