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Dollar pushes higher despite U.S. housing data

Published 03/23/2016, 11:50 AM
© Reuters.  Dollar extends gains vs. rivals, hits 1-week high
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Investing.com - The dollar pushed higher against the other major currencies on Wednesday, even after data showed that U.S. new home sales rose less-than-expected in February, as hawkish comments by several Federal Reserve members continued to support the greenback.

USD/JPY rose 0.24% to 112.64.

The U.S. Commerce Department said new home sales rose by 2.0% to 512,000 units last month, compared to expectations for a 3.2% gain to 510,000 units.

But the greenback remained supported after Philadelphia Fed President Patrick Harker said late Tuesday that the U.S. central bank should raise interest rates as early as next month if the U.S. economy continues to improve.

Chicago Fed President Charles Evans said he expects two more rate hikes before the years end, if the economy remains on track.

The comments came a day after Atlanta Federal Reserve President Dennis Lockhart signaled that the Fed could hike interest rates in April.

EUR/USD slid 0.35% to trade at 1.1177.

Market sentiment remained under pressure after three explosions in Brussels killed 34 people and injured hundreds on Tuesday.

Global terrorist organization ISIS claimed responsibility for the attacks that took place in the city's airport and a metro station.

The dollar was higher against the pound and the Swiss franc, with GBP/USD down 0.70% at 1.4111 and with USD/CHF easing up 0.09% to 0.9736.

The pound continued to fall as the attacks in Brussels were seen as increasing the chances of a British exit from the European Union in a June 23 referendum.

Meanwhile, the Australian and New Zealand dollars were weaker, with AUD/USD tumbling 1.13% to 0.7535 and with NZD/USD retreating 0.80% to 0.6698.

USD/CAD rallied 1.16% to 1.3203.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.46% at 96.11, the highest since March 16.

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