Dollar nears 10-month highs on dovish Fed comments
Currencies Direct May 17th 2013 - < 1 minute read
The US dollar inched up to 10-month
highs against a basket of currencies on Friday morning in Asian
trade on dovish comments from the Fed.
EUR/USD slumped to a six-week low
while the greenback was trading around four-and-a-half-year highs
against the yen.
Sterling also weakened on the news,
with the pound
exchange rate down 0.25 per cent at 1.5237, its lowest in over
Dollar buying was spurred after the
president of the Federal Reserve Bank of San Francisco suggested
the Fed may pull back on its $85 billion-a-month monetary easing
The dollar index, which measures
its strength against a basket of currencies, was last up 0.4 per
cent to 83.905, just off a ten-month peak of 84.094 set on
Meanwhile the Australian dollar
continued its decline this month on Friday, with AUD/USD losing 0.6
per cent to an 11-month low of 0.9759.
Its New Zealand counterpart also
suffered, shedding 0.7 per cent to hit a six-month trough of 0.8101
against the greenback.