Dollar near its highest level in nearly nine years after US economic growth data
Dollar near its highest level in nearly nine years after US economic growth data
12/24/2014 10:28 GMT
Agencies – The dollar held near its highest level in nearly nine years versus a basket of currencies on Wednesday as markets made a forecast for an appointment to increase interest rates after data showed the US economy recorded the strongest growth in 11 years.
The US economy grew by five percent on an annual basis in the third quarter in the strongest indication yet of the accelerated pace of growth is uncertain.
This led to a rise in the dollar index to levels not seen since March 2006, while the yield on US Treasury bills jumped to the highest level in almost four years at 0.747 percent.
The euro languished near its lowest level in 28 months at $ 1.2165 that it reached following the announcement of the US gross domestic product data. The euro stood at 1.2188 dollars latest trading well below the moving average of the 200-day of $ 1.2230, a long-term technical support level for the European currency.
Said Takahiro Suzuki, vice president of foreign exchange at Nomura brokerage in Tokyo: “I think that the euro may fall below the level of $ 1.20 soon probably in January.”
alrayy.com
