Home Economy Dollar rises from one-month low on prospect of higher interest rates

Dollar rises from one-month low on prospect of higher interest rates

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  • Dollar bounces vs euro ahead of ECB meeting
  • Central bank meetings, data later in week add risk
  • Commodity-linked currencies rise further

NEW YORK/LONDON, Oct 25 (Reuters) – The dollar rose from a one-month low on Monday, ahead of central bank meetings and economic data coming later this week, boosted by the prospect of a tighter U.S. monetary policy.

The upward move came at the expense of the euro, the Japanese yen and the Swiss franc.

“There’s so much event risk on tap this week and the dollar has underperformed over the last two weeks that the market’s starting to buy back the dollar,” said Joseph Manimbo, senior market analyst at Western Union Business Solutions.

The dollar index was up nearly 0.2 at 93.8150 for the day after having fallen during trading in Asia to a one-month low following comments on Friday from Federal Reserve Chair Jerome Powell that affirmed plans to cut back on bond purchases.

At one point the dollar index was up 0.4% on the day as…

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