Dollar jumped Before FOMC; The Sterling Rises After BOE

by on August 20, 2014 2:34 pm BST

The dollar strengthened to its highest levels since last September versus the euro and basket of major currencies before the Federal Reserve releases the minutes of its July meeting amid speculation policy makers are moving toward raising borrowing costs.

The U.S. currency gained 0.2 percent to $1.3285 per euro as of 9:01 a.m. in New York, after appreciating to $1.3275, the strongest level since Sept. 13. The greenback climbed 0.4 percent to 103.29 yen after reaching 103.41, the most since April 7. The euro rose 0.1 percent to 137.24 yen.

A gauge of the U.S. currency reached a six-month high before Fed Chair Janet Yellen speaks at Jackson Hole, Wyoming on Aug. 22. Goldman Sachs Group Inc. said it expects further gains in the dollar as money flows out of Europe.

The sterling strengthened against all of its 31 major peers after the Bank of England said two officials voted for an increase in interest rates at the Aug. 6-7 policy meeting. New Zealand’s dollar declined on speculation economic growth is waning.

Sterling gained 0.2 percent against the dollar at $1.6649 and as much as half a percent against the euro at 79.775 pence per euro in response.