Yellen's rate comments shore up US$ sentiment

London

THE US dollar hit a one-month high against a basket of major currencies on Monday after stronger-than-expected underlying US inflation bolstered the Federal Reserve's case for an interest rate hike later this year.

Fed Chair Janet Yellen's comments that the central bank was poised to raise rates in 2015 also shored up sentiment towards the US dollar, traders said. Amid low volumes, with most of Europe as well as the United States shut for a holiday, the US dollar index, which measures the greenback against other major currencies, was up 0.3 per cent at 96.475, a one-month high.