The U.S. dollar rose today during the late Asian Forex trading session, as the traders reacted on the hawkish commentary by the Federal Reserve Bank of Kansas City President Thomas Hoenig.
Hoenig said that if the inflation pressures strengthen in U.S., Federal Reserve will probably increase the interest rates. According to him, the U.S. economy will recover from the current crisis later this year and the Fed will be forced to switch to the price growth.
Apart from the hawkish tone of the Hoening’s comments, dollar growth was also enhanced by the worsening situation in U.K., where consumer confidence fell to the lowest level since early 2004.
EUR/USD fell today after two days of growth seen this week and declined from 1.5532 to 1.5500 as of 7:38 GMT. GBP/USD fell today after two days of volatile bidirectional movement — it went down from 1.9732 to 1.9628.
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