The U.S. dollar gained against most other currencies Tuesday as the divergence between the Federal Reserve and other central banks has driven investment flows into America and boosted the greenback.
The Fed, the U.S. central bank, on Dec. 16 announced its decision to raise benchmark interest rate by 25 basis points, marking the end of an era of extraordinary easing monetary policy. Given the considerable improvement in labor market conditions in 2015 and it's reasonably confident that inflation will rise, traders expected that the Fed will continue the rate hike in 2016.
While central banks in Japan and Europe were expected to unleash further stimulus. The dollar index, which measures the greenback against six major peers,was up 0.53 percent at 99.365 in late trading. In late New York trading, the euro fell to 1.0751 U.S. dollars from 1.0832 dollars of the previous session, and the British pound decreased to 1.4671 U.S. dollars from 1.4715 dollars.
The Australian dollar went down to 0.7163 U.S. dollar from 0.7184 dollar. The U.S. dollar bought 119.04 Japanese yen, lower than 119.31 yen of the previous session. The dollar moved up to 1.0089 Swiss francs from 1.0020 Swiss francs and moved up to 1.3990 Canadian dollars from 1.3949 Canadian dollars.
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