Dollar holds upper hand as market ponders Fed choice

Wednesday,   18-Oct-2017   09:22 AM (IST)

The dollar held an upper hand against other major currencies on Wednesday as investors weigh the possibility that U.S. President Donald Trump will choose a more hawkish Federal Reserve chief with than the current chair, Janet Yellen.The dollar index stood at 93.475, extending its rebound from Friday's 2 1/2-week low of 92.749. It rose as high as 93.729 on Tuesday.With the Federal Reserve expected to raise interest rates for the third time this year in December, markets are now looking to who will lead the Federal Reserve after Yellen's term expires next February.Trump has a pool of five candidates to choose from for the next chair of the Federal Reserve and is likely to announce his choice before going to Asia in early November.As the dollar gained broadly, the euro slipped to $1.1770, little changed in early Asian Wednesday trade but down 0.5 percent so far on the week.However, the dollar made less headway against the yen, as investors remain hesitant to take big positions ahead of Japan's election on Sunday.The British pound wallowed at $1.3193 having fallen 0.5 percent on Tuesday after comments by Bank of England policymakers were interpreted by markets as dovish.