US Dollars has soared for two consecutive days as The Fed officials hinted that the interest rate hike would take place as early as April, resulting a boosting of assets appeal denominated in the US currency. The officials post-meeting statement sounds to be reiterating Chair Janet Yellen statements that the rate would hike in April.
The US Dollars rose against most of its major peers as recent economic data may give grounds for additional policy tightening following the first rate hike in nearly a decade last December.
A great momentum is believed to be occuring in term of justfying the increase as it is shown in the economics report. Head of foreign-exchange trading and research at Aspen Trading Group, Dave Floyd, has said that they are apparently “the prettiest of the ugly” from the interest rate and central banking point of view, which gives the Dollars a favor. San Francisco Fed chief John Williams also said that if the data continues to come in the expected way, April or June would be the potential, ideal time to rise the rate.
As how it stands, the inflation rate, which is currently behind The Fed’s 2 percent target, could significantly get closer to the target when the oil prices bottom out.