US dollar rallies on Fed officials' comments

October 5, 2016 10:57 am 

NEW YORK, Oct. 5 — The US dollar climbed against other major currencies on Tuesday on Federal Reserve officials' hawkish remarks on raising interest rates.

Richmond Fed President Jeffrey Lacker, a non-voting member of the Fed's policymaking committee, said on Tuesday that there was a strong case to raise interest rates and that borrowing costs might need to rise significantly to keep inflation under control.

Cleveland Fed President Loretta Mester said on Monday that the US central bank should not delay raising rates.

Analysts said officials' comments bolstered market speculation for a rate-hike by year-end.

The dollar index, which measures the greenback against six major currencies, was up 0.46 percent at 96.137 in late trading.

In late New York trading, the euro fell to USD1.1201 from USD1.1217, and the British pound declined to USD1.2739 from USD1.2859. The Australian dollar decreased to USD0.7621 from USD0.7674.

The dollar bought 102.82 Japanese yen, higher than 101.57 yen in the previous session. The dollar inched up to 0.9798 Swiss francs from 0.9733 Swiss francs, and it rose to 1.3197 Canadian dollars from 1.3117 Canadian dollars. (PNA/Xinhua)

BNB/EBP

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