Dollar Rises As US Data Fuel Talk Of Rate Hike

Dollar rises as US data fuel talk of rate hike

TOKYO, (APP - UrduPoint / Pakistan Point News - 20th july,2016) - The Dollar broadly rose Wednesday as another positive round of US data fanned speculation the Federal Reserve will lift interest rates, while central banks elsewhere consider stimulus measures to kickstart growth. A decision by the International Monetary Fund to cut its global growth projections for this year and next also lifted the greenback against higher risk units as dealers sought out safety. New home construction in the US rose in June at its best pace in nine months, official data showed Tuesday. The figures are the latest to indicate the world's top economy is getting on to a sure footing following a blockbuster jobs creation report at the start of the month and news that retail sales had picked up.

The greenback has soared since the jobs data, which came as central banks and leaders from -- among others -- Japan, Britain and Europe indicate they will loosen monetary policy to negate the effects of Britain's shock vote to leave the EU. On Tuesday the new finance minister in London Philip Hammond said the Bank of England must act to stimulate the economy.

While the BoE this month held off cutting rates, it did say it would likely announce a reduction in August. In Asian trade the pound fell to $1.3079 from $1.3101, having sat around $1.3250 at the start of the week. The British unit is heading back towards the 31-year lows below $1.28 touched in the weeks after the June 23 Brexit vote.