Updated Saturday, August 2, 2014 as of 12:30 AM ET
Portfolio - Global Investing
Dollar Climbs Versus Major Peers on Prospects for Higher Rates
Thursday, March 20, 2014
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(Bloomberg) -- The dollar gained versus all its major counterparts after Federal Reserve policy makers indicated they’ll probably raise interest rates by the middle of next year with the U.S. economy showing signs of strengthening.

The greenback rose the most since January versus the euro and yen as the Federal Open Market Committee discarded a jobless-rate threshold for considering when to raise borrowing costs and said it will look at a wide range of data. Policy makers also reduced monthly bond-buying by $10 billion, the third consecutive cut of that size. The Canadian dollar slid to the weakest since 2009 on bets the Fed will raise rates before the Bank of Canada does.

“Compared to market’s expectations going into meeting, the statement is on the hawkish side,” Shahab Jalinoos, a senior currency strategist for UBS AG in Stamford, Connecticut, said in a phone interview. “Now we’re looking at a qualitative assessment of the economy and we’re gradually moving out of a low-rate environment.”

The dollar gained for the first time in four days against the euro, climbing 0.7% to $1.3833 at 5:32 p.m. New York time. It rallied as much as 0.9%, the biggest intraday jump since Jan. 2, to $1.3810, the strongest level since March 6. The U.S. currency rose as much as 1.2%, the most since Jan. 14, to 102.68 yen before trading at 102.32, up 0.9%. The euro rose 0.1% to 141.54 yen.

The Bloomberg Dollar Spot Index, which monitors the greenback against 10 major counterparts, rose 0.8% to 1,020.09 and reached 1,021.42, the highest since Feb. 27. It touched 1,011.35 on March 17, the lowest since Nov. 1.

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