Dollar Halts Gain as Fed’s Kocherlakota Warns Against Rate Rises
Baku, January 9, AZERTAC
The dollar halted a five-day advance versus the euro as Federal Reserve of Minneapolis President Narayana Kocherlakota said raising U.S. interest rates this year would hinder a recovery in inflation.
The greenback fell for the first time in three days against the yen even as economists predicted a U.S. report today will show employers added more than 200,000 jobs for an 11th month. The euro headed for its biggest weekly drop versus the yen since June after European Central Bank President Mario Draghi said stimulus measures may include sovereign-bond purchases. South Korea’s won extended its biggest weekly gain in four months.
“We’re seeing some Fed officials starting to hint they may slow the pace of rate increases, so even if the labor report shows strong numbers, it won’t be a reason for the dollar to gain too much,” said Daisuke Karakama, chief market economist at Mizuho Bank Ltd. In Tokyo. “At the same time, there aren’t many reasons for the dollar to trend lower either. Even if the labor report turns out to be bad, we shouldn’t expect the dollar to fall below 118 yen.”
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