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U.S. dollar extends gains on expectation of aggressive Fed tightening

NEW YORK
2022-01-28 07:32

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NEW YORK, Jan. 27 (Xinhua) -- The U.S. dollar advanced significantly in late trading on Thursday as the market digests the possibility of more aggressive monetary tightening by the Federal Reserve.

The dollar index, which measures the greenback against six major peers, jumped 0.87 percent to 97.2460.

The positive effect on the U.S. dollar from expectation of a more aggressive Fed cannot be negated, particularly against the euro among the majors, said a research note by foreign exchange and international payment solutions provider Tempus, Inc. on Thursday.

Newly-released U.S. GDP growth data for 2021 and less-than-expected jobless claims last week also supported the greenback.

In late New York trading, the euro dropped to 1.1146 U.S. dollars from 1.1253 dollars in the previous session, and the British pound fell to 1.3381 dollars from 1.3460 U.S. dollars in the previous session. The Australian dollar weakened to 0.7034 U.S. dollar from 0.7118 dollar.

The U.S. dollar bought 115.31 Japanese yen, higher than 114.51 Japanese yen of the previous session. The U.S. dollar moved up to 0.9312 Swiss franc from 0.9237 Swiss franc, and it picked up to 1.2734 Canadian dollars from 1.2657 Canadian dollars.
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