Dollar Gains Against Euro After Philadelphia Index Strengthens
By Min Zeng
Nov. 16 (Bloomberg) — The dollar rose against the euro after a report showed manufacturing in the Philadelphia area advanced for the first time in three months.
The data reduced speculation that the Federal Reserve will cut borrowing costs early next year. The dollar extended gains after Federal Reserve Bank of St. Louis President William Poole said today the U.S. economy is not “out of the woods” on inflation. Fed Bank of Chicago President Michael Moskow said “some additional firming” of policy may be needed.
The Fed Bank of Philadelphia’s index rose to 5.1 this month from minus 0.7 in October. The index reached minus 0.4 in September, which was the first contraction in the gauge since April 2003. Readings below zero signal a decline. Forecasters in a Bloomberg survey had expected a reading of 5.
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