Expectation Fed May Raise Rates Faster
Published:
10 June 2004 y., Thursday
The dollar traded near its highest in two weeks against the euro in Asia after Thomas Hoenig, president of the Federal Reserve Bank of Kansas City, said a consistent pick-up in inflation ``will require more aggressive policy.''
The president of Fed's New York branch, Timothy Geithner, also said yesterday policy makers would do what is ``necessary to curb inflation,'' a day after Fed Chairman Alan Greenspan suggested he was willing to abandon the bank's commitment to raising rates at a ``measured'' pace.
``Investors are starting to look into the chance the Fed will steer itself toward more aggressive rate increases,'' said Hiroyuki Yamada, who manages $1 billion in overseas debt at Daiwa SB Investments Ltd. in Tokyo. ``That's increasing the dollar's appeal for now because of higher rates'' dollar-denominated debt will offer.
Against the euro, the dollar was at $1.2038 at 8:36 a.m. in Tokyo from $1.2049 late yesterday in New York, according to EBS, an electronic foreign-exchange dealing system. It traded as high as $1.2023, the strongest since May 25.
The yen may gain against the euro on expectations Japan's machinery orders in April rose for the first time in two months, as a recovery in the world's second-largest economy picks up.
Šaltinis:
Bloomberg
Copying, publishing, announcing any information from the News.lt portal without written permission of News.lt editorial office is prohibited.
The most popular articles
European Commission Vice-President Siim Kallas, responsible for transport, today presented to the College a preliminary assessment of the economic consequences for the air transport industry of the volcanic ash crisis.
more »
Boosting economic recovery, investing in Europe's youth and in tomorrow's infrastructures are the priorities of the 2011 draft budget adopted by the Commission on 27 April 2010.
more »
European Competition Commissioner Joaquín Almunia welcomes proposed commitments by Visa Europe to significantly cut its multilateral interchange fees (MIFs) for debit card payments.
more »
Because of the Icelandic volcano, flower growers in Colombia couldn't get their stems to markets in Europe.
more »
The Second Vice President of the Spanish government and Minister of Economy and Finance, Elena Salgado, on Sunday played down the importance of apparent fissures within the EU concerning the Greek financial crisis, expressing her confidence that all countries would support the aid package for this country, which will be accompanied by a tough budget-tightening plan.
more »
Commission launches an information campaign on the CE conformity mark - designed to ease the free movement of goods around Europe and protect consumers.
more »
If Europe's airports ever open again the introduction of new security measures like body scanners will be expensive.
more »
After Eurozone Finance Ministers agreed measures to address Greece’s financial woes last Sunday, MEPs quizzed leading economic figures, including the chairman of Goldman Sachs - former financial advisors to the Greek government - on how to strengthen EU economic governance and improve reporting of national statistics.
more »
The European Tourism Stakeholders Conference, being held in Madrid today and tomorrow, will explore ways and means to strengthen the visibility of tourism at a European level and to verify how the actions to promote a competitive EU tourism industry.
more »
The European Bank for Reconstruction and Development (EBRD), World Bank Group member IFC, and The Netherlands Development Finance Company (FMO) have joined up with the Asia Debt Management Hong Kong (ADM Capital) to establish a regional fund to invest in midsize companies facing financing difficulties as a result of the financial crisis.
more »