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The United States currency has not almost changed in relation to other currencies throughout morning forex trades in Sydney. Thus the USD has strengthened the highs it has gained after the possibility of the interest rate hikes expressed by the Federal Reserve officials.
So the USD was traded at 107.45 Japanese Yen and Euro – at $1.5463. The USD have gained support from the possible interest rate hikes caused by the suggestion of the Ben Bernanke concerning the fact that the decline of the economy doesn’t seem to happen even considering the growing inflation. Another contribute to the growth of the USD was made by the Dallas Federal Reserve President – Richard Fisher.
According to Richard Fisher the Federal Reserve is not going to constrain the forecasts of growing inflation and it stands for small growth in case this will provide any control over the prices.
A senior forex analyst at Thomson IFR Markets – John Noonan said the recent global trend of the market is the constraining inflation and commodity prices by the Central Banks of the countries and the European Central Bank is not alone now in this branch. He has also added the in case Central Bank will reach their aims in decreasing inflation and commodity prices then those currencies supported by commodities (like Australian dollar) will experience an increased demand.
Henry Paulson – US Treasury Secretary underlined the recent positive trend of the USD at the G8 meeting. He added that the fundamentals of the US economy are not worse than those of other countries and noted that the intervention was a policy option.
According o John Kyriakopoulos the head of currency strategy at NAB Capital Markets the US policymakers finally realized that the low USD is not the best tool to fight against growing prices.