US dollar extends advances as Atlanta Fed official backs rate hike

The US dollar prolonged its surge Wednesday as Atlanta Federal Reserve President Dennis Lockhart supported the call for an interest rate hike in September. The Federal Open Market Committee voter said it would take a considerable degeneration in the American economy for him not to back rate increase next month. The greenback closed at $1.0847 per euro. Versus the Japanese yen, the currency ended at ¥124.46. Lockhart was not slated to speak until August 10. Hence, his remarks “and the timing of the interview is surprising,” said Richard Cochinos, Head of Americas G10 FX Strategy at Citi. Amidst his comments, the odds of a September increase are still seen hanging on Friday's jobs data.

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