Jakarta (Benchmark News) – The exchange rate of the US dollar vary traded against other major currencies on Monday (21/12/2016), after having strengthened for ten consecutive sessions amid speculation that the Federal Reserve will raise interest rates at the end of the year.
The U.S. dollar index, which tracks the greenback against six major currencies, dropped 0.08 percent to 101.130 in late trading.
The index has climbed almost five percent in the ten last session, because of the potential economic policies the US President-elect Donald Trump and the comment “Netanyahu” recently by Fed officials encourage market expectations for a rise in interest rates next month.
Analysts said that the possibility of increasing tax cuts and a series of policies that are generally pro-growth of Trump, assisted and supported by the Republican party which swept clean seats in Congress, raised speculation the market for a revival of inflation and more interest rate hikes in the future.
In addition, the Fed Chairman Janet Yellen said on Thursday (17/11) that a rise in interest rates “could also be a right relatively soon if the incoming data give some further evidence of continued progress towards the goals of the Committee.” Kansas City Fed President, Esther George, also said on Friday (18/11) that the U.S. economy will benefit from a rise in Fed interest rates.
In late New York trading, the euro fell into 1.0600 dollars from 1.0604 dollars, and pounds United Kingdom rose to 1.2466 dollars from 1.2354 dollars. Australia dollars rose to 0.7348 dollars from 0.7343 dollars.
The dollar bought 111.25 Japan yen, higher than 110.62 yen in the previous session. The dollar rose in thin into Switzerland from 1.0096 francs 1.0107 francs in Switzerland, and falls into a 1.3439 dollars from 1.3498 dollars in Canada…(Red)