Greenspan Remarks Boost Dollar
The dollar was mostly higher against key currencies Wednesday, strengthening after Federal Reserve Board Chairman Alan Greenspan hinted of a possible interest rate increase.
Greenspan said in remarks to the Senate Finance Committee that the still-robust economy is growing too rapidly, which could ignite inflation.
The comments set the stage for a rate hike at the Fed’s Federal Open Market committee meeting next Tuesday, said traders. Higher rates increase the dollar’s value.
Late in New York, the dollar was quoted at 1.5175, up from 1.5131 late Tuesday. But the dollar slipped against the yen, changing hands in New York at 99.53, vs. 99.77 Tuesday.
Currency in Dollar in
Exchange Dollars foreign currency
Canada .7079 1.4126
France .1905 5.2495
Germany .6592 1.5170
Great Britain 1.5907 .6287
Japan .010045 99.55