U.S Dollar hits four-month high

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July 20, 2016 3:28 PM

The increase has been attributed to strong predictions on the U.S economy and expectations that U.S interest rates would be increased before the end of 2016.

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The U.S Dollar has reached a record four-month high against its counterpart currencies, hitting a 97.271 .DXY, its highest level since March 10 and also rising against the Pound Sterling and the Yen.

Other statistics on the performance of the housing sector that showed a growth level of 4.8%, and a total sale of 1.19 million units has also played its part.

Against the Yen, the dollar rose 0.01%, and currency strategist, Lan Nguyen told Reuters that

"The dollar is now being supported by rising U.S. rate expectations. The likelihood of a Fed rate hike before the end of the year that is being priced in by the markets has almost returned to the levels seen before the EU referendum," said Thu Lan Nguyen, currency strategist at Commerzbank."

READ MORE:VRA Debt List of VRA’s debt to 13 banksReports also have it that most speculators have begun pulling out their security investments in the Yen as it continues to drop against the Dollar after Britain exit from the European Union.Speculators have also been unwinding their safe-haven bids in the yen as the initial shocks from the Brexit vote dissipated, and expectations rose of additional easing from the Bank of Japan at its July 28-29 meeting.

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