US dollar strengthens amid Fed comments, gold falls

NEW YORK, Nov 29 (Bernama) -- The US dollar rose in late trading on Monday as market participants digested comments from Federal Reserve officials, reported Xinhua.

The dollar index, which measures the greenback against six major peers, increased 0.68 per cent to 106.6810.

In late New York trading, the euro decreased to US$1.0342 from US$1.0414 in the previous session, and the British pound fell to US$1.1949 from US$1.2094 in the previous session.

The US dollar bought 138.88 Japanese yen, lower than 139.03 Japanese yen of the previous session.

The US dollar increased to 0.9492 Swiss francs from 0.9445 Swiss francs, and it rose to 1.3490 Canadian dollars from 1.3374 Canadian dollars. The US dollar increased to 10.5551 Swedish Kronor from 10.4091 Swedish Kronor.

St Louis Fed President James Bullard said on Monday that the Fed needs to raise interest rates quite a bit further to gain control of inflation and bring back toward the central bank's 2 per cent goal.

In an interview with MarketWatch, Bullard said financial markets are underestimating the chances that policymakers will need to be more aggressive next year in raising interest rates to curb inflation.

Elsewhere, New York Fed President John Williams said in a speech at the Economic Club of New York that officials have more work to do to curb inflation that remains "far too high".

Fed Chair Jerome Powell is set to speak on the outlook for the U.S. economy, inflation, and the labour market at a Brookings Institution event on Wednesday.  

In Chicago, gold futures on the COMEX division of the New York Mercantile Exchange fell on Monday as the US dollar strengthened.

The most active gold contract for December delivery fell US$13.7, or 0.78 per cent, to close at US$1,740.3 per ounce.

Silver for December delivery fell 51.5 cents, or 2.4 per cent, to close at US$20.915 per ounce. Platinum for January delivery rose US$11.5, or 1.16 per cent, to close at US$999.3 per ounce.

-- BERNAMA