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Dollar rallies broadly after Fed statement, Yellen comments
December 17, 2014 / 1:26 AM / 3 years ago

Dollar rallies broadly after Fed statement, Yellen comments

NEW YORK (Reuters) - The U.S. dollar rallied against major currencies after the Federal Reserve’s latest policy statement and comments from Fed Chair Janet Yellen signaled the central bank was on track to hike rates next year.

Arrangement of various world currencies including Chinese Yuan, Japanese Yen, US Dollar, Euro, British Pound, Swiss Franc and Russian Rouble pictured in Warsaw, January 26, 2011. REUTERS/Kacper Pempel

The dollar hit its highest levels against the euro and Swiss franc in over a week after the Fed offered a strong signal that it was on track to raise interest rates sometime next year, altering a pledge to keep them near zero for a “considerable time” in a show of confidence in the U.S. economy.

“Markets are taking the dollar higher, as they should be, because the Fed is on track to hike rates in 2015,” said Win Thin, currency strategist at Brown Brothers Harriman in New York.

The euro EUR= was last down 1.28 percent against the dollar at $1.2346 after hitting $1.2322, its lowest level against the greenback since Dec. 9. The dollar was last up 1.23 percent against the Swiss franc CHF= after hitting a high of 0.9745 franc, its highest level against the franc since Dec. 9.

The dollar was last up 1.68 percent against the Japanese yen JPY= at 118.30 yen after hitting a session high of 118.60 yen.

The U.S. dollar index .DXY, which measures the greenback against a basket of six major currencies, was last up 0.82 percent at 88.846.

Reporting by Sam Forgione; Editing by Meredith Mazzilli and Lisa Shumaker

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