The US dollar was rather soft for the most part of Friday’s session but bounced by the close with support of comments from Federal Reserve Vice Chairman Stanley Fischer.
Fischer was talking to CNBC today, and he said that “there was a pretty strong case” for a September interest rate hike. He then added that the central bank should not wait too long before starting monetary tightening. Other Fed members were also speaking this week, and they had varying opinions regarding this matter. Still, the probability looks strong that the Fed will hike rates this year, if not necessary in September.
The renewed speculations about monetary firming next month helped the dollar to regain its footing that the currency has seemingly lost at the start of the week. The greenback rallied for four consecutive sessions versus the euro and the Japanese yen.
EUR/USD dropped from 1.1242 to close at 1.1186 after climbing to the daily high of 1.1309 earlier. GBP/USD ended the session virtually flat at 1.5396. USD/JPY advanced from 121.00 to 121.37.
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