The dollar rose to two-month highs against the other major currencies on Friday after Federal Reserve Chair Janet Yellen said U.S. interest rates could rise in the coming months and after data showing U.S. first quarter growth was revised upward.
The dollar strengthened after U.S. central bank chief Janet Yellen said Friday it would beappropriate for the Fed to raise rates “gradually and cautiously” in the coming months if the economy and the labor market continue to pick up as expected.
Higher rates are positive for the dollar because they make the U.S. currency more attractive to yield-seeking investors.
The Commerce Department reported that gross domestic product rose at an annualized rate of 0.8% in the three months to March, up from the initial estimate of 0.5%.
The dollar has risen in recent weeks as upbeat economic reports and comments by Fed officials suggested that the U.S. central bank could raise rates as soon as its June meeting.
Technical
Support at 94.30 and resistance at 96.40.
Close above 96.40 will take it to 97.00---97.20 marks in days to come, else could test its support level 94.30. Further downside panic can be seen below 94.30.
Trade with levels only.
