Dollar Gains for First Day in Four as U.S. Data Back Rate Hikeby
The dollar snapped its longest slide since August as gross domestic product and jobless claims data bolstered speculation the Federal Reserve is set raise interest rates by year-end.
The greenback rose against most of its major peers as reports showed the economy expanded more than previously estimated in the second quarter, while jobless claims rose less than forecast last week. Fed Bank of Atlanta President Dennis Lockhart said the central bank is nearing its goals of maximum employment and steady inflation close to 2 percent, while Kansas City Fed President Esther George said she supports tighter policy.
"The Fed speakers continue to try their absolute best to guide the market to increase pricing for December,"said Sam Lynton-Brown, a foreign-exchange strategist at BNP Paribas SA in London.
The greenback pared its loss this year to 4 percent as Fed Chair Janet Yellen said Wednesday that the majority of the central bank’s policy-setting group sees an interest-rate increase as likely this year. Futures imply a 53 percent probability that the central bank will boost rates by year-end.
The Bloomberg Dollar Spot Index, which tracks the currency against 10 major peers, rose 0.2 percent as of 5 p.m. in New York, snapping three days of losses. The gauge is down 0.4 percent this month and has lost 0.2 percent this quarter.