Saturday,
20 September 2014 02:5
NEW YORK: The dollar advanced Friday against other major
currencies, while the British pound retreated despite Scotland's vote against
breaking from the United Kingdom.
The greenback hit a 14-month high against the euro, as "the
coast was clearer for markets to focus on US optimism and expectations for Fed
rate hikes in 2015" following the Scottish vote, said Joe
Manimbo, senior
market analyst at Western Union Business Solutions.
The dollar has rallied against the euro, the yen and others on
expectations that the US Federal Reserve is closer to tightening policy than
other central banks.
But David Rodriguez, quantitative strategist at DailyFX, said
trading data suggest euro selling and dollar buying "has slowed
significantly," signalling a possible shift was imminent.
The British pound, meanwhile, retreated against the dollar despite
Scots voting 55 percent against a referendum to exit the centuries-old United
Kingdom.
Analysts attributed the pound's drop to profit-taking following a
surge Thursday.
"Sterling encountered profit-taking on its rise as the vote
outcome largely met expectations while others expected political uncertainty to
linger since London promised more constitutional powers to Scotland in exchange
for keeping the UK intact," said Manimbo.
0 comments:
Post a Comment