Dollar rallies after Greenspan fails to hint at pause in US rate hikes

0 Comments | AFP, June, 2005

LONDON (AFP) — The dollar firmed against other major currencies as the market breathed a sigh of relief that Federal Reserve Chairman Alan Greenspan failed to hint at any pause in US interest rate hikes.

The euro retreated to 1.2217 dollars in late European trading, from 1.2227 late on Wednesday in New York.

The dollar rose to 107.48 yen, from 107.26 on Wednesday.

Greenspan delivered what was interpreted as a fairly hawkish testimony before the Joint Economic Committee of Congress.

The market had been looking to see whether the Fed chief would echo recent comments by Dallas Fed president Richard Fisher suggesting that the end of the tightening phase was near.

"The speech will disappoint those expecting Greenspan to back Fisher's comments,"...

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