Dollar Gains Versus Yen, Euro as Fed Odds Weighed Before Yellen
- Fed chair to give semiannual testimony to Congress this week
- Yen weakens against Australian dollar as stocks pare losses
Fed Rate Hikes to Be Forced by Higher Wages: Amoroso
This article is for subscribers only.
The dollar rose for a second day against the euro and yen as investors looked toward Federal Reserve Chair Janet Yellen’s testimony to Congress Wednesday for signs of whether markets are underestimating the odds of a near-term interest-rate increase.
The greenback climbed after a U.S. employment report on Friday showed wage growth exceeded estimates, bolstering the case for the Fed to lift rates this year. Futures pricing for a move before year-end climbed to 53 percent Friday from 46 percent the previous day. The yen weakened versus Australia’s dollar as equities in Japan erased declines and the nation reported a current-account surplus that was smaller than economists had forecast.