Business News

SINGAPORE, (APP/AFP) – The dollar rallied
Wednesday after comments by two regional Fed officials stoked speculation the US central bank could consider raising interest rates next month.
A sell-off in global stocks on fears of a slowing world economy is
also leading traders to flee higher-yielding, riskier, investments sending emerging market currencies tumbling.
At around midday, the dollar was trading at 107.19 yen having touched
18-month lows at 105.50 yen on Tuesday.
The euro dipped to $1.1483 after hitting an eight-month high of
$1.1616 Tuesday. The single currency was also at 123.10 yen against 122.71 yen in New York.
The greenback, which has tumbled about 13 percent against the yen
this year, enjoyed a pick-up after Atlanta Fed President Dennis Lockhart on Tuesday called a June rate increase “a real option”.
Also, San Francisco Fed chief John Williams said he would lend
support to a hike if the US economy continued on its recovery track.
There had been doubts US central bank policymakers would raise
interest rates next month after data last week showed consumer spending rose only slightly in April, with slower economic growth in the first quarter of 2016.
A well-below-forecast reading on US manufacturing activity for April
compounded the problems and raised concerns about the recovery in the world’s top economy.