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The dollar s rise resumes - MarketPulse

January 14, 2021SharePrint Dovish Fed Governors cap dollar’s gains A plethora of Federal Reserve Governors, notably Harker, Brainard and Clarida, along with some successful bond auctions, managed to cap the rise in US yields overnight, with the 10-year now over ten basis points off its recent highs. Harker said that the Fed would basically keep rates lower for longer. Brainard, always an uber-dove, said much the same and added that the Fed could increase bond purchases if necessary. Clarida noted that when the Fed does raise rates, they will only have to raise them slightly to reach a neutral policy stance. He added that the Fed would like to see one year of two per cent inflation before tightening. Despite the dovish chorus emanating from the Fed, the dollar finished the overnight session stronger. The dollar index rose 0.30% to 90.35 and has climbed to 90.40 this morning. That leaves the index mid-range with critical levels being 90.00 and 91.00.

BOK s Lee: Monetary policy needs to stay accommodative until a stable recovery in our economy is seen

; BOK’s Lee: Monetary policy needs to stay accommodative until a stable recovery in our economy is seenNEWS | 12/31/2020 5:24:59 AM GMT | By Anil Panchal “Monetary policy needs to stay accommodative until a stable recovery in our economy is seen, as there are high uncertainties to the growth path, while inflation is also expected to fall below the target level for a while,” said the Bank of Korea (BOK) Governor Lee Ju-yeol said in a New Year’s message on Thursday. The South Korean central banker also cited global resurgences in COVID-19 cases, the discovery of virus variants and the possibilities of a reignition in global trade disputes as risks to the export-reliant economy, in addition to demographic and labor challenges, per Saltwire.com.

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