Dollar posts gains on bet of riant employment data, Fed’s Evans’ hawkish comment



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Dollar posts gains on bet of riant employment data, Fed’s Evans’ hawkish comment

On Thursday, the US Dollar Index (DXY) measured against a basket of six major currencies on an average reported steep gains, extending its latest leg of winning streak into a second straight day, as hawkish remarks from Fed officials had sent shockwaves across FX market while bolstering the safe-haven bid further for the US Dollar.

Earlier in the day, Fed’s Evans was quoted saying that the US Federal Reserve have been headed towards a rate-hike in a range between 4.50 to 4.75 per cent this year, painting a perilous picture for a barrage of emerging market and major currencies.

On top of that, a growing investors’ bet on an upbeat US non-farm payroll data this week following yesterday’s riant ADP National Employment report, added to a bullish wing to the American currency.

Dollar gains on hawkish remarks from Fed, bet on strong employment data

Citing statistics, in the day’s FX market wind-down, the US Dollar Index (DXY) measured against a basket of six major currencies on an average, had wrapped up the session sharply higher, climbing as much as 1.21 per cent to 112.11, while the eurozone’s common currency Euro shared among 19 member states faltered 0.91 per cent to $0.9791, paring all of the gains scored a couple of days earlier.

Besides, British pound pummelled 1.45 per cent to $1.1159 against its American peer as political upheavals over budgetary issue alongside a likely hawkish monetary policy from the BoE (Bank of England) coupled with worries over a catastrophic energy crisis had fuelled up investors’ worries further.

Risk-sensitive Australian Dollar had drowned further, shrugging off as much as 1.22 per cent to $0.6404 against the greenback, while Japanese Yen slipped 0.33 per cent to 145.11 Yen per Dollar.