The US dollar has slipped against the euro as expectations firmed on a Federal Reserve interest rate increase in December.
The Wall Street Journal said on Thursday its poll of economists had found about 92 per cent see a hike at the Fed’s December 15-16 policy meeting in the benchmark federal funds rate, held near zero since December 2008.
In early October, before last week’s strong US jobs report, 65 per cent of forecasters predicted a December lift-off, the newspaper said.
Investors have also grown more confident in a December hike.
The CME Group’s Fed futures watch tool put the probability of a December hike at 70 per cent.
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“The dollar broke a little lower Thursday but bullish sentiment remained intact given markets’ elevated expectations for interest rates to rise in the US and fall in the eurozone as early as next month,” said Joe Manimbo, senior market analyst at Western Union Business Solutions.
The euro edged up to $US1.081 around 2200 GMT on Thursday (0900 AEDT Friday) from $US1.0741 at the same time on Wednesday.
“Fed officials spoke today but remarks from the most important official, Chair Janet Yellen, were mum on policy specifics,” Manimbo said.
“Comments from other Fed officials largely were balanced, with some ready to raise rates and some not.”
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