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
The European Commission has adopted additional legislative proposals today to further strengthen financial supervision in Europe.
more »
The EU has announced plans to regulate the market for derivatives – complex financial products that helped trigger the financial crisis.
more »
New proposals to help EU farmers through the milk price crisis were backed by Parliament on Thursday.
more »
The European Commission and the European Investment Bank (EIB) Group are organising a conference in Brussels on 22 and 23 October to further promote two initiatives designed to increase the use of financial engineering instruments in the framework of cohesion policy.
more »
The biggest thermal insulation production manufacturer in Finland “Finnfoam” has started the construction of a thermal insulation production plant in Kaunas FEZ.
more »
The European Investment Bank (EIB) is providing two loans in Hungary.
more »
Key Western Balkan projects to benefit from new funding EU, IFI financing to focus on infrastructure, SMEs and energy efficiency.
more »
Lithuania, Belarus and China will cooperate in the development of the initiative of the East-West transport corridor.
more »
On October this year AB Bank SNORAS will provide preferential UAB “Guarantee Fund of Agricultural Loans ” purpose loans to farmers and companies, which scope of activity is economic activity and processing of agricultural production.
more »
The European Commission has today approved an application from Austria for assistance under the European Globalisation Adjustment Fund (EGF).
more »