Dollar builds on rally as Fed prepares ground for December lift off
The dollar hit a three-month high against a basket of major currencies on Thursday, bolstered by comments from influential Federal Reserve officials who kept chances of an interest rate hike in December alive.
U.S. two-year Treasury yields rose to their highest in 4-1/2 years and spreads over their German counterparts DE2YT=RR widened to their maximum since late 2006, boosting the allure of the dollar to investors.
The dollar index .DXY, which tracks the greenback against six major peers, was up 0.15 percent at 98.135, after having gained 0.8 percent on Wednesday.
The dollar's gains came as chances for a December rate hike rose over 50 percent after Federal Reserve Chair Janet Yellen laid out what appears the base case at the U.S. central bank that the country is ready for higher interest rates.
Driving home the point, William Dudley, the influential president of the New York Fed and a permanent voter on policy, later said the he would "completely agree" with Yellen that December is a "live possibility" for raising rates.
Economists expect the U.S. nonfarm payrolls report on Friday to show that U.S. employers have added 180,000 jobs last month ECONUS. Goto added that a number above 165,000-170,00 along with a tick up in wages would prompt the Fed to start hiking rates in December.
The greenback broke out of its recent 120.00-121.60 range against the yen JPY=, to reach a two-month high of 121.85 yen.
U.S. two-year Treasury yields rose to their highest in 4-1/2 years and spreads over their German counterparts DE2YT=RR widened to their maximum since late 2006, boosting the allure of the dollar to investors.
The dollar index .DXY, which tracks the greenback against six major peers, was up 0.15 percent at 98.135, after having gained 0.8 percent on Wednesday.
The dollar's gains came as chances for a December rate hike rose over 50 percent after Federal Reserve Chair Janet Yellen laid out what appears the base case at the U.S. central bank that the country is ready for higher interest rates.
Driving home the point, William Dudley, the influential president of the New York Fed and a permanent voter on policy, later said the he would "completely agree" with Yellen that December is a "live possibility" for raising rates.
Economists expect the U.S. nonfarm payrolls report on Friday to show that U.S. employers have added 180,000 jobs last month ECONUS. Goto added that a number above 165,000-170,00 along with a tick up in wages would prompt the Fed to start hiking rates in December.
The greenback broke out of its recent 120.00-121.60 range against the yen JPY=, to reach a two-month high of 121.85 yen.
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