US dollar surges on higher interest rate speculations
March 12, 2015 7:44 am
The US dollar on Thursday climbed, ignited by prospects of greater interest rates in the United States.
A firm US employment data last Friday fueled bets the Federal Reserve might raise rates in the middle of the year, although certain investors and analysts were worried the American economy might not be resilient enough to regain even modestly higher borrowing costs.
Against the euro, the greenback was trading at $1.0511, which last stood at $1.0546.
The strength of this currency, as well as specter of higher rates also rattled many emerging markets which had benefited from funds evading low yields in the country.
The risk these emerging currencies might decline further… certain emerging nations “are running current account deficit and their currencies fall would be negative for risk asset markets,” said Makoto Noji, Senior Strategist at SMBC Nikko.
The material has been provided by InstaForex Company – www.instaforex.com
The US dollar on Thursday climbed, ignited by prospects of greater interest rates in the United States.
A firm US employment data last Friday fueled bets the Federal Reserve might raise rates in the middle of the year, although certain investors and analysts were worried the American economy might not be resilient enough to regain even modestly higher borrowing costs.
Against the euro, the greenback was trading at $1.0511, which last stood at $1.0546.
The strength of this currency, as well as specter of higher rates also rattled many emerging markets which had benefited from funds evading low yields in the country.
The risk these emerging currencies might decline further… certain emerging nations “are running current account deficit and their currencies fall would be negative for risk asset markets,” said Makoto Noji, Senior Strategist at SMBC Nikko.
The material has been provided by InstaForex Company – www.instaforex.com
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