Aug 22 2014
Dollar Value Increase From 11-Month High As Yellen Notes Employment Gains
Rate Range Projection by Bank
Next week 103.50- 104.50
Next 3 months 100.00 - 105.00
The euro pared losses after European Central Bank President Mario Draghi said he’s confident the stimulus put in place will boost demand in the economy. Brazil’s real dropped after as the nation’s current account deficit widened last month more than forecast.
“The market reaction has been positive for the dollar,” Brian Daingerfield, currency strategist at Royal Bank of Scotland Group Plc’s RBS Securities unit in Stamford, Connecticut, said in a phone interview. “We’re very used to Chair Yellen’s view of the labor market being generally considered on the dovish side. Today’s commentary was neither particularly hawkish or dovish.”
The dollar reached an 11-month high against the euro after Federal Reserve Chair Janet Yellen cited jobs gains made during the five years of economic recovery while noting slack remains in the U.S. labor market. The U.S. currency rose to the highest level since February against its major peers as Yellen’s remarks in Jackson Hole, Wyoming, supported speculation the Fed will raise interest rates next year.