Greenback hits one-month peak with GDP data on tap

Greenback hits one-month peak with GDP data on tap

25 September 2015, 13:25

On Friday the dollar rose to fresh one-month highs against the other major currencies, after Federal Reserve Chair Janet Yellen signaled the possibility for a rate hike before the end of the year.

Meanwhile, investors eyed upcoming U.S. economic growth data. 

In a speech late Thursday, Fed Chair Janet Yellen said she expected the central bank to begin raising rates later in 2015, as long as inflation remained stable and the U.S. economy was strong enough to boost employment.

The speech weighed on gold with Comex gold for December delivery last trading at 1,143.30 /oz, down 0.91%.

Higher interest rates can hurt commodities in general and gold in particular because it doesn’t pay interest, making it a less attractive investment. Plus, higher rates lift the dollar and a stronger greenback can weigh on dollar-denominated commodities as they become pricier for holders of other currencies.

Investors were awaiting final reports on U.S. second quarter growth and consumer sentiment, due later in the day, for further indications on the strength of the economy.

Earlier Friday, official data showed that Tokyo's consumer price index fell at an annualized rate of 0.1% in September, compared to expectations for a 0.2% downtick.

Tokyo's core CPI, which excludes fresh food, fell at an annual rate of 0.2% this month, in line with expectations.

The dollar was higher against the yen, with USD/JPY up 0.64% at 120.83.

EUR/USD dropped 0.60% to 1.1164, moving closer to Wednesday's two-and-a-half week lows of 1.1102.

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