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Dollar Index extends winning streak as Fed speakers back more tightening

The index hit 101.40, its highest since late July, after jobless claims and new home sales came in stronger than forecasts.

Reported · Written up by our desk · Major Pairs

The US Dollar Index extended its winning streak, reclaiming about 90% of what it lost between a late-July peak and an August low, and reaching 101.40 on Thursday, its highest level since late July, according to FXStreet.

FXStreet reports that three Fed officials spoke on Thursday and all said more tightening may be needed, with New York Fed President Williams saying it is reasonable to expect one more increase this year, Cleveland Fed President Hammack noting that inflation risks lean higher, and Philadelphia Fed President Paulson indicating further modest increases may be needed.

The outlet adds that US data did not give the officials reason to back off, as initial jobless claims fell to 197K versus a 201K forecast and new home sales rose 6.4% in August after a 4.3% decline.

FXStreet also notes that the futures market has been pricing in an October hike, with odds described as better than even, and that a further rate increase would support the dollar’s momentum.

Latest closeDollar index 101.29 ▲0.2%

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