Dollar hits 16-month high ahead of key US data

The US dollar rose against a basket of currencies on Tuesday, to head for the third daily gain in row, near a 16-month peak thanks to improved demand, after the White House nominated Jerome Powell to serve as the chairman of the Federal Reserve, and ahead of key economic data in the US.

The dollar index rose 0.1% to 96.60 points, after opening at 96.46 points, and hit a low at 96.30 points.

The index gained 0.45% yesterday, after the White House announced the nomination of Jerome Powell.

The White House has formally nominated Jerome Powell to serve as the chairman of the Federal Reserve for a second term ending in 2026, and also Lael Brainard to serve as the Fed’s vice chair.

This step fueled expectations that the central bank will maintain its monetary policy as the economy recovers from the pandemic, amid increased bets that of an interest rate hike in 2022.

At 14:45 GMT, the US Flash Manufacturing PMI reading for November will be released, which is expected up to 59.3 points from 58.4 points in October, and the services PMI reading is expected at 59.1 points from 58.7 points.