USD: The dollar is supported but will the planned interest rate hikes go ahead?

The US dollar has stabilised after comments from two Federal Reserve officials supporting further interest rate hikes this year, moving the focus away from President Donald Trump’s failed healthcare bill.

One of the principle reasons for the dollar gaining in strength at the start of the year was the expectation of numerous rates hikes throughout 2017. A stance that was supported by Federal Reserve big wigs Robert Kaplan and Charles Evans, putting the emphasis back on the prospect of more rate hikes.

US consumer confidence increased for March, which also helped give the dollar a kick in the right direction and regain some of last week’s losses, as has the conclusion among analysts that President Trump will have to quickly move on from Friday’s healthcare defeat and focus on his fiscal reforms.

For more on currencies and currency risk management strategies please get in touch with your Smart Currency Business trader on 020 7898 0500 or your Private Client trader on 020 7898 0541.