Dollar up as Fed's Fischer keeps September rate rise alive
The dollar picked up strength Friday after Stanley Fischer, the Federal Reserve vice chair, said a rate hike is still possible in September.
Speaking on the sidelines of the Fed's central banking symposium in Jackson Hole, Wyoming, Fischer acknowledged that the turmoil rooted in China had raised some questions about the economic situation, even if US data remains good.
"The change in the circumstances which began with the Chinese devaluation is relatively new and we are still watching how it unfolds. So I wouldn't want to go ahead and decide right now," he said in a CNBC interview.
"We are dealing with something which happened about 10 days ago, particularly the change in the circumstances. We've got a little over two weeks before we make the decision and we've got time to wait and see the incoming data and see what exactly, what is going on now in the economy."
Fischer's comments gave the dollar a push to $1.1188 per euro, compared to $1.1239 late Thursday.
The greenback also rose to 121.52 yen and to $1.5399 against the pound.
The recovery of major equity markets at the end of the week eased some of the stress among traders worldwide, but worries remained over how China's slowdown and continuing pressures on the yuan would spill through the global economy.
After having slipped against the dollar between Tuesday and Thursday, the yuan pulled back up 0.2 percent Friday to 6.3896 per dollar, roughly the same level it held after the currency was modestly devalued just over two weeks ago.
