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FOREX-Dollar rises to one-month high on rate-hike view, sterling drops
2017年6月20日 / 晚上6点46分 / 5 个月前

FOREX-Dollar rises to one-month high on rate-hike view, sterling drops

    * Dollar reaches three-week highs against euro, yen
    * Top Republicans talks up chances of U.S. tax reform in 2017
    * Sterling drops after BoE's Carney cools rate-hike bets
    * Fed's Dudley sees U.S. wages, inflation rebounding

 (Updates market action, adds quote)
    By Richard Leong
    NEW YORK, June 20 (Reuters) - The dollar hit a one-month high on Tuesday against a basket of
currencies on the view the Federal Reserve may raise interest rates once more this year, while
sterling tumbled after the Bank of England's head threw cold water on the notion it was close to
raising rates.
    The greenback grinded higher following comments from New York Fed President William Dudley
on Monday who said further improvement in the U.S. labor market would kindle inflation, which
has shown signs of flagging in recent months. If it were to rebound, this would leave the door
open for the possibility of another rate hike by year-end after two hikes so far this year.

    The U.S. central bank as expected raised key overnight borrowing costs by a quarter point to
1.00-1.25 percent last Wednesday.
    "We had a hawkish Fed last week. We seemed to have had a delayed reaction as the dollar had
been oversold," said Mazen Issa, senior currency strategist at TD Securities in New York.
    Since last week's Fed meeting, a few policy-makers expressed caution about another rate
increase in the coming months.
    Chicago Fed President Charles Evans said on Monday it may be worthwhile for the Fed to wait
until year-end to decide on another rate hike due to recent weak inflation data.
    The dollar also received support on remarks from top Republicans who spoke of completing
U.S. tax reform in 2017, widely seen as a likely boost to economic growth. Doubts persist
whether it is possible due to the divides within the Republican party and its acrimony with
Democrats, analysts said.
    "There might be tax reform this year," said Stan Shipley, strategist at Evercore ISI in New
York. "But that's a brave assumption."
    The index that tracks the greenback versus six currencies was up 0.3 percent at
97.800 after touching 97.871 earlier Tuesday, which was the highest since May 18.
    The euro fell to a three-week low of $1.1117, while the dollar reached 111.86 yen,
the highest since May 26, Reuters data showed.
    The dollar fared best against the British pound among major currencies. It gained after BoE
Governor Mark Carney said now was not the time to raise UK interest rates. Last week three BoE
policymakers had voted in favor of a rate hike.
    Carney warned of weak wage growth and a likely hit to incomes as Britain prepares to leave
the European Union, sending sterling to a two-month low of $1.2603, down 0.9 percent.
    Currency bid prices at 1431 EDT (1831 GMT):
 Description      RIC       Last       U.S. Close  Pct     YTD Pct  High Bid   Low Bid
                                        Previous   Change   Change             
 Euro/Dollar      EUR=      $1.1125    $1.1148     -0.21   +5.82    +1.1165    +1.1119
 Dollar/Yen       JPY=      111.4400   111.5100    -0.06   -4.65    +111.7800  +111.3200
 Euro/Yen         EURJPY=   123.98     124.31      -0.27   +0.68    +124.6300  +123.9200
 Dollar/Swiss     CHF=      0.9756     0.9754      +0.02   -4.15    +0.9766    +0.9726
 Sterling/Dollar  GBP=      1.2622     1.2732      -0.86   +2.32    +1.2757    +1.2603
 Dollar/Canadian  CAD=      1.3254     1.3216      +0.29   -1.31    +1.3284    +1.3205
 Australian/Doll  AUD=      0.7581     0.7594      -0.17   +5.07    +0.7623    +0.7571
 Euro/Swiss       EURCHF=   1.0852     1.0874      -0.20   +1.26    +1.0881    +1.0852
 Euro/Sterling    EURGBP=   0.8811     0.8751      +0.69   +3.44    +0.8834    +0.8739
 NZ               NZD=      0.7246     0.7230      +0.22   +4.39    +0.7267    +0.7221
 Dollar/Norway    NOK=      8.5508     8.4999      +0.60   -1.00    +8.5656    +8.4634
 Euro/Norway      EURNOK=   9.5117     9.4776      +0.36   +4.69    +9.5335    +9.4414
 Dollar/Sweden    SEK=      8.7901     8.7414      +0.38   -3.49    +8.7991    +8.7257
 Euro/Sweden      EURSEK=   9.7793     9.7427      +0.38   +2.08    +9.7934    +9.7344

 (Additional reporting by Jemima Kelly in Paris; Masayuki Kitano in Singapore; Editing by Hugh
Lawson and Tom Brown)

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