The US dollar on Tuesday reached its highest in more than a week as the market changed its focus from Greece to likelihood for higher interest rates.
Upbeat US data and remarks from Federal Reserve Governor Jerome Powell, who expressed his preparedness to increase rates twice this year, helped bolster the Treasury yields and the greenback.
The dollar stood at $1.11700 per euro from $1.11350 earlier, the lowest in more than two weeks. Against the Japanese yen, the currency closed at ¥123.900.
Fed’s Powell disclosing his projection for two hikes this year and US data being slightly positive might have backed price action, “but EUR and USD were already on the move prior to those developments,” said Greg Moore, Senior Currency Strategist at RBC.
The material has been provided by InstaForex Company – www.instaforex.com