(MENAFN– ecpulse)
The U.S. dollar rose against most other major currencies on Tuesday after the Federal Reserve Chair Janet Yellen indicated the central bank could hasten plans to raise interest rates in the labor market continues to strength.
"If the labor market continues to improve more quickly than anticipated by the Committee, resulting in faster convergence toward our dual objectives, then increases in the federal funds rate target likely would occur sooner and be more rapid than currently envisioned," Yellen said in prepared remarks to the Senate Committee on Banking, Housing, and Urban Affairs.
But Fed Chairwoman Janet Yellen, speaking before the Senate Banking Committee, also said that time has not yet arrived, given the “considerable uncertainty” surrounding the economic outlook.
The dollar index, which tracks the U.S. unit against six major currencies, traded at 80.44 as of 16:00 ET on Tuesday, up from its previous close of 80.20 late Monday in North American trade. The dollar scaled a high of 80.46 intraday and a low of 80.17.
The euro traded at $1.35657 Tuesday afternoon, down from $1.36177 late Monday. The dollar rose to 101.676 yen, compared to 101.524 late Monday.
The pound maintained gains against most major currencies Tuesday afternoon following higher-than-expected U.K. inflation data, which strengthened the case for a Bank of England rate hike sooner rather than later.
The British pound, which outperformed after data showed a jump in UK inflation, traded up 0.37 percent against the dollar at $1.71445 after earlier in the day matching a nearly six-year high of $1.7192.
Consumer prices rose 1.9 percent on the year in June, the Office for National Statistics said, beating expectation for a 1.6 percent reading.
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