MarketWatch writes article about Dollar gains as Yellen says Fed is ready to hike in 2015:
By Joseph Adinolfi and Kosaku Narioka
Published: Sept 25, 2015 4:20 p.m. ET
Dollar finished the week at or near record highs against the Brazilian
real, Mexican peso, Turkish lira
Federal Reserve Chairwoman Janet Yellen
By
JosephAdinolfi
Markets reporter
KosakuNarioka
The dollar posted a weekly gain against both its developed and
emerging-market rivals Friday after Federal Reserve Chairwoman Janet
Yellen said the central bank would likely raise interest rates in 2015.
The ICE U.S. Dollar index DXY, -0.05% a measure of the dollar’s
strength against a basket of six rival currencies, rose 1.1% this week
to 96.1770.
Speaking at the University of Massachusetts-Amherst Thursday evening,
Yellen said most members of the Fed’s interest rate-setting
committee, including herself, believe economic conditions will warrant
a rate hike by year’s end.
Yellen’s outlook contrasted sharply with remarks made by European
Central Bank President Mario Draghi on Wednesday, and rate cuts by the
central banks of Norway and Taiwan earlier in the week.
‘The fact that, even in this context, the Fed is still talking about
tightening is pretty dramatic,’ said Marshall Gittler, head of global
FX strategy at IronFX. ‘The monetary policy divergence trade is still
very much intact.
The euro EURUSD, -0.3027% traded at $1.1203 late Friday in New
York, down 0.9% from $1.1360 late last week. The dollar USDJPY,
+0.43% rose to ”120.54 late Friday, up 0.5% from ”119.90 last week.
The Australian dollar was the worst performer among the currencies of
developed nations this week, shedding 2.4% of its value to trade at
70.24 cents late Friday, down from 71.96 cents late last week.
Among emerging-markets currencies, the dollar finished the week at or
near record highs against the Brazilian real USDBRL, +0.6024%
Mexican peso USDMXN, +0.6076% and Turkish lira USDTRY,
+0.2105%
MarketWatch Article Source Here.