Dollar solid as Fed maintains tightening bias
Published February 22nd, 2007
The dollar was firm on renewed speculation of further interest rate hikes this year from the US Federal Reserve after the minutes to its last rate-setting meeting continued to show a tightening bias.
Analysts said the news, coupled with stronger than expected US inflation data for January, has reinforced expectations that there won’t be any change in borrowing costs any time soon.
The minutes to the meeting, released overnight, showed that policymakers continued to worry about inflation and suggested that they won’t be lowering their guard any time soon.
‘The minutes of the January FOMC meeting emphasise the committee’s view that the prevailing level of core CPI inflation is uncomfortably high,’ said Steve Pearson (nyse: PSO - news - people ), currency strategist at HBOS.
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