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Forex - Dollar rises vs. euro, slips vs. yen amid U.S. rate hike hopes

Published 09/28/2015, 02:18 AM
© Reuters.  Dollar remains supported vs. euro, edges lower against yen with U.S. rate hike in focus
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Investing.com - The dollar gained ground against the euro on Monday and slipped moderately against the yen, as amid growing expectations for the Federal Reserve to raise interest rates in the coming months.

EUR/USD edged down 0.17% to 1.1170.

The dollar found support after Federal Reserve Chair Janet Yellen said last Thursday that the U.S. central bank remains on track to raise interest rates this year.

The comments reassured investors that monetary policy has not altered significantly following the Fed’s decision to hold off hiking rates earlier this month.

The greenback received an additional boost after data on Friday showed that the U.S. economy grew at a faster rate than previously estimated in the three months to June.

The Commerce Department said gross domestic product expanded at an annual rate of 3.9% in the second quarter, up from an initial estimate of 3.7%.

Consumer spending, which comprises more than two-thirds of U.S. economic activity was revised up to 3.6% from the 3.1% reported in August.

USD/JPY slipped 0.19% to trade at 120.26, but losses were expected to remain limited.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.08% at 96.44.

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