EUR/USD Drops to 1.3320 on Fed Rates Speculation

The dollar was near a nine-month high versus the euro on speculation the Federal Reserve is moving toward raising interest rates. Goldman Sachs Group Inc. said it expects further gains as money flows out of Europe.

The greenback was near a two-week high versus a basket of major peers before minutes today from the Federal Reserve’s policy meeting last month. The Aussie retreated from an eight-month high versus its New Zealand peer as Reserve Bank of Australia Governor Glenn Stevens delivers semi-annual testimony to the House of Representatives Economic Committee.

“Currency markets may be pricing in an earlier-than-expected interest rate increase by the Fed ahead of the minutes,” said Masato Yanagiya, the head of foreign exchange and money trading in New York at Sumitomo Mitsui Banking Corp., a unit of Japan’s second-biggest financial group by market value. “The dollar continues to be bought.”

Bloomberg

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