The US dollar picks up

The dollar strengthened Tuesday following Fed commentary and stronger-than-expected data.

The US dollar index was up by 0.47% at 93.90 at 11:48 a.m. ET.

The index climbed as high as 94.10 earlier in the day, marking its strongest level this month.

Federal Reserve Bank of New York President William Dudley suggested Monday that it wasn’t “unreasonable” to expect a September announcement on when the Fed would start winding down its balance sheet.

He added that he could support another hike later this year if the economy “evolves in line with my expectations.”

“Dudley essentially confirmed what many economists have come to expect,” said Marc Chandler, global head of currency strategy at Brown Brothers Harriman, adding that the “comments underpinned US interest rates and the dollar.”

The New York Fed president’s comments come ahead of Wednesday’s scheduled release of the minutes from the July Federal Open Market Committee meeting.

Separately, the dollar climbed further Tuesday following stronger-than-expected data. Retail sales rose by 0.6% month-over-month in July, above expectations of a 0.4% advance. Core retail sales rose by 0.5%, above expectations of a 0.3% gain.

Business Insider Emails & Alerts

Site highlights each day to your inbox.

Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.