25th Aug 2014 17:48
WASHINGTON (Alliance News) - The dollar extended its yearly highs versus the euro on Monday as traders continued to weigh comments from the world's top central bankers at last week's Jackson Hole symposium.
European Central Bank President Mario Draghi said the ECB would carry out quantitative easing unless inflation picks up.
Inflation expectations in Europe have fallen sharply in recent months, suggesting that ECB may be prompted to act before summer's end.
On the other hand Federal Reserve Chair Janet Yellen on Friday warned that rate hikes could come sooner than expected if the US economic recovery is sustained.
"If progress in the labor market continues to be more rapid than anticipated or if inflation moves up more rapidly than anticipated, resulting in faster convergence toward our dual objectives, then increases in the federal funds rate target could come sooner than the Committee currently expects and could be more rapid thereafter," Yellen said in speech delivered to fellow central bankers at the Fed's annual Jackson Hole symposium
The dollar rose to USD1.3184 versus the euro, its highest since last September. A downbeat reading on the US housing sector kept the dollar from rising any further.
Sales of new single-family homes fell 2.4% in July from June to a seasonally adjusted annual rate of 412,000, the Commerce Department said Monday. It was the slowest pace of new home sales in four months.
The buck was steady against the sterling, holding at a multi-month high near USD1.6580.
The dollar was also flat after recent gains versus the yen, staying around Y104 in choppy trading.
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