Dollar gains ahead of senate meeting

Published: 24 Feb at 6 AM Tags: Euro, Dollar,

The dollar has made gains against most of the world’s major currencies ahead of an appearance by Janet Yellen, Chair of the Federal Reserve, before a senate panel. Analysts and investors will be looking for an indication as to when the US central bank intends to hike interest rates.

The euro has come under pressure following last week’s four-month extension to the Greek bailout. Many are concerned that the deal will struggle to keep the country solvent. The single currency has also been hit by disappointing German business figures.

The dollar index hit a week high of 94.915 before settling up 0.3 per cent at 94.565. A pull away from near zero interest rates in the US has been hampered by weak global growth and sluggish domestic inflation.

Yellen’s announcement and concerns about the state of the Greek economy have helped to boost the safe-haven yen against the dollar and the single currency. The euro is currently down 0.5 per cent against its Japanese rival at 134.75 yen and dropped 0.4 per cent against the dollar to $1.1336.

The dollar last traded down 0.1 per cent at 118.88 yen. The Swiss franc is also suffering and dropped 1.3 per cent against the dollar to trade at 0.95125 francs.