Summer Rate Hike Boosts USD

The dollar strengthened across the board on Tuesday and hit an eight-week high against the euro as investors brought forward their bets on when the U.S. Federal Reserve will raise interest rates again.

The biggest loser among currencies in developed markets was the Australian dollar, which slid by more than 1 percent to its weakest since early March. In contrast to hawkish comments from the Fed, the Reserve Bank of Australia fueled speculation overnight that interest rates will be cut again.

Helped by its gains against the euro, the U.S. dollar hit its strongest in eight weeks against a basket of major currencies. It was 0.57 percent higher against the European single currency at $1.1152.

via CNBC

Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, he established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza