The greenback rose on Friday as dollar bulls took heart after Federal Reserve Chair Janet Yellen kept the door open to a hike in interest rates later this year, a week after the central bank delayed aa long-anticipated move.
US stocks offered little reaction to Speaker John Boehner’s resignation, effective at the end of next month, with the Ohio Republican saying a lot of work remains to be done before he relinquishes his House seat.
The US economy grew at an even faster clip in the spring than previously estimated.
Recent global economic and financial market developments do not significantly affect the United States central bank’s policy, she said.
USA stock-index futures advanced as Federal Reserve Chair Janet Yellen reassured investors that US economic growth is sturdy enough to withstand turmoil in emerging markets.
The most active gold contract for December delivery fell 8.20 USA dollars, or 0.71 percent, to settle at 1,145.60 dollars per ounce.
Rounding out action on Comex Friday, December copper shed 1.9 cents, or 0.8%, to $2.284 United States of America a pound, losing 4.3% on the week.
The US economy expanded at an annual rate of 3.9 percent in the April-June quarter, up from a previous estimate of 3.7 percent, the Commerce Department reported Friday. Rates are now at a seven-year low of 0-0.25%, following cuts in the wake of the 2008 global financial crisis.
Stephen Weiss, founder and managing partner of Short Hills Capital Partners LLC, said Yellen’s speech was “powerful” and made it clear that the Fed is going to raise rates this year. “The expectation of a rate increase still this year is based on model projections of growth and recovery in the economy, and individual committee members’ expectations“.
After its emissions-cheating scandal, Volkswagen has appointed a new chief executive officer, causing a rebound in European markets.
The euro rose to $1.1194 while the dollar edged up to 120.60 yen. Hong Kong’s Hang Seng inched down 0.3 percent to 21,041.09. That sparked declines in USA equities in five out of six sessions leading up to Ms Yellen’s speech.
Sonia, suggest that a full quarter-point increase to the BOE’s 0.5 percent official rate won’t come until beyond November 2016. Brent Crude, a benchmark for many global oils, fell 11 cents to $48.75 a barrel in London.