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US dollar firms against euro

Wednesday, November 4, 2015 - 06:40
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The dollar firmed against the euro on Tuesday as traders awaited public comments from Fed Chair Janet Yellen and other top US central bank officials, hoping for interest rate hike signals.

[NEW YORK] The dollar firmed against the euro on Tuesday as traders awaited public comments from Fed Chair Janet Yellen and other top US central bank officials, hoping for interest rate hike signals.

Following the Fed's decision to leave its key rate near zero at the October 27-28 policy meeting and signal a December hike was still on the table, Ms Yellen will be testifying Wednesday to a House of Representatives committee about the Fed's supervision and regulation of the US financial system.

Forex watchers were looking to possible comments by Ms Yellen on whether the Fed believes the economy could handle the first rate hike in nine years.

Also on tap this week is a forum on Thursday organised by the Federal Reserve Bank of New York, with New York Fed President William Dudley and Fed Vice Chair Stanley Fischer scheduled to speak.

"The US dollar drifted higher in holiday-subdued trade with markets in Japan enjoying a day off," said Joe Manimbo, senior market analyst at Western Union Business Solutions.

After declining against the euro in the previous four trading sessions, the dollar rose to US$1.0959 per one euro around 2200 GMT, from US$1.1014 at the same time Monday.

Mr Manimbo noted that despite news of a one percent fall in US factory orders in September, that was about half the decline in August.

"The data was the latest to hint at the US economy stabilising after a recent slump, keeping the Fed within a meeting of raising interest rates," he said.

AFP