Dollar Strengthens as China Rises Interest Rates

The US dollar strengthened today against all other currencies as the demand for the higher-yielding currencies slumped after the unexpected interest rates hike in China.

The subsequent sell-off boosted the dollar and crippled other currencies. The greenback also strengthened after Timothy Geithner, the US Secretary of the Treasury, said yesterday that the policy makers would attempt to preserve the strength of the US currency and aren’t planning the devaluation.

EUR/USD fell from the opening level of 1.3935 to 1.3810 as of 13:12 GMT today after it advanced to 1.4003. USD/JPY went up from 81.27 to 81.75.

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