US$ nears 2-week high on fresh talk of rate hike

London

THE dollar touched an almost two-week high against a basket of major currencies on Tuesday after comments from Federal Reserve officials revived expectations that US interest rates will still be hiked later this year.

The greenback has bounced back over 2 per cent since lows hit on Friday in the wake of the Fed's decision not to raise rates immediately and its paring back of US growth forecasts. Though some now do not expect a rate hike until early next year, about half are betting on a rise in October or December.