U.S. dollar gains on hawkish Fed official comments

Federal Reserve Bank St. Louis President James Bullard said Wednesday that `a single policy rate increase, perhaps as soon as December, would likely be sufficient to move monetary policy to a neutral setting,` Xinhua reported.He added that it is possible for the U.S. economy to get a medium-term boost if U.S. President-elect Donald Trump increases infrastructure spending and overhauls the tax code.Boston Fed President Eric Rosengren said Tuesday that the central bank won't be easily swayed from raising interest rates in December.On the economic front, the Producer Price Index (PPI) for final demand was flat in October, seasonally adjusted, missing market consensus of a 0.3 percent gain, the U.S. Department of Labor reported Wednesday.U.S. industrial production was unchanged in October after edging down 0.2 percent in September, the Federal Reserve announced.The U.S. dollar index, which measures the greenback against six major currencies, rose 0.28 percent to 100.510 in late trading.In late New York trading, the euro fell to 1.0670 U.S. dollars from 1.0720 U.S. dollars, and the British pound dropped to 1.2433 U.S. dollars from 1.2440 U.S. dollars. The Australian dollar decreased to 0.7477 U.S. dollar from 0.7545 U.S. dollar.The U.S. dollar bought 109.35 Japanese yen, higher than 109.13 yen of the previous session. The U.S. dollar rose slightly to 1.0039 Swiss francs from 1.0021 Swiss francs, and it decreased to 1.3431 Canadian dollars from 1.3468 Canadian dollars. (Uu.A012)
Editor: Alm
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