The U.S. dollar gained in strength against its peers on Tuesday amid rising bond yields. Traders also bet on hopes the Fed will start reducing the size of its asset purchase program and raise interest rates next year.
Fed Chairman Jerome Powell said in his prepared remarks before the Senate Banking Committee that inflation in the U.S. is elevated and could persist in the coming months before dropping back towards the Fed's long-run 2% goal.
Fed Governor Lael Brainard said that the labor market would meet her criteria for tapering immediately, whereas New York Fed President John Williams indicated that slowing down the bond buying program may be required soon.
Meanwhile, a report released by the Conference Board showed a continued deterioration in U.S. consumer confidence in the month of September.
The Conference Board said its consumer confidence index tumbled to 109.3 in September from an upwardly revised 115.2 in August.
The decrease surprised economists, who had expected the index to inch up to 114.8 from the 113.8 originally reported for the previous month.
U.S. treasury yields rose, with the benchmark 10-year yield touching 1.52%.
The dollar index climbed to 93.81 before easing to 93.72, up by about 0.4%.
Against the Euro, the dollar to 1.1685 from 1.1696.
The Pound Sterling drifted down against the dollar, and was fetching $1.3539 a little while ago, declining from C$1.3639.
The Yen weakened to 111.51 against the dollar, easing from 111.01.
Against the Aussie, the dollar firmed to 0.7241 from 0.7286.
The Swiss franc weakened to 0.9293 from 0.9257, while the Loonie dropped to C$1.2683 a barrel, from C$12629.
The material has been provided by InstaForex Company - www.instaforex.com
source http://www.mt5.com/forex_news/quickview/2183273/
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