The dollar strengthened briefly against the euro yesterday, as talk of higher U.S. interest rates and a sell-off in tech stocks benefitted the safe-haven currency. However, it’s unclear as to whether this rally will be sustained.
Treasury Secretary, Janet Yellen, said earlier this week that interest rate hikes may be needed as the economy recovers. However, she later downplayed this comment, saying that she was neither predicting nor recommending a rate hike.
Four more Federal Reserve officials will be speaking later today. Composite and services PMI data will also be released, both expected to show an improvement in April due to the easing of restrictions in the US.
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