Dollar Rises As Markets Await Fed Chair Speech

Muhammad Rameez Published August 24, 2016 | 11:46 AM

TOKYO, (UrduPoint / Pakistan Point News -24th Augst,2016) - The Dollar rose Wednesday with the Federal Reserve's policy plans in focus, while the South Korean won fell after the North tested a submarine-launched missile, bringing geopolitical tensions back into focus. Traders are awaiting a speech by Fed chief Janet Yellen at the Jackson Hole symposium of global bankers Friday hoping for clues about the direction of US monetary policy. On Wednesday, the dollar bought 100.36 Yen against 100.23 yen in New York, while the euro slipped to $1.1295 from $1.1307. The greenback has been see-sawing this week as divergent views from Fed officials have kept dealers guessing about the central bank's plans.

"The US dollar appears to be in consolidation mode ahead of the key risk event for the week, Fed Chair Yellen's scheduled speech at Jackson Hole," Kymberly Martin, a Currency strategist at the Bank of New Zealand, said in a commentary. "The market has recently nudged up expectations for near-term Fed activity but still remains fairly reticent to fully price a rate hike." The dollar also rose against most Asian currencies.

It put on 0.4 percent against the won, partly in response to North Korea's missile launch early Wednesday morning, analysts said.