Summary Dollar firmed against other major currencies, as Janet Yellen's reaffirms 2015 rate hike.
NEW YORK (AFP) - The dollar firmed against other major currencies Wednesday, buoyed by Federal Reserve Chair Janet Yellen s reiteration that an interest rate hike remained likely this year as the economy improves.
In semi-annual testimony to US lawmakers, Yellen stuck to the position of the last meeting of the Federal Open Market Committee, for a rate hike "at some point this year" if "the economy evolves as we expect."
Kathy Lien of BK Asset Management said that dollar bulls were rejoicing at Yellen s hawkish comments.
"Not only did Yellen confirm that rates will rise this year but it is her view that waiting too long would mean rates would have to rise at a faster pace later," Lien said.
Better-than-expected US June data released Wednesday could add fuel to the Fed s rate hike plan. US producer prices rose for a second month, by 0.4 percent, slightly higher than the 0.3 percent analyst estimate. And industrial production rose 0.3 percent, rebounding from two months of declines.
The Fed s Beige Book survey of the US economy found growth was "modest" or "moderate" across the country in May and June.
