The US dollar has been strengthening due to the interest rates increasing expectations by the FRS
On Thursday, in the morning trading session, the US dollar index has reached a seven-week high of 101,91 due to the investors’ expectations that the FRS will raise the interest rates. The reason for this was the Lael Brainard’s statement, a member of the US Federal Reserve, that it will be appropriate to raise the interest rates taking into account that the economic situation is improving in the world and in the United States in particular.
A confirmation of the FRS intentions comes from the comments by authorized representatives of the Federal Reserve John Williams and William Dudley. They assume that Central Bank officials will not delay the rates increase accounting the economic incentives that are being considered in Washington now. This view is also shared by Yukio’s Ishizuki, a Daiwa Securities analyst. He believes that the rates increase is likely, but under the condition that an USA employment data, which will publish next week, will be no worse than expected.