FOREX-Dollar holds higher after Fed chief announcement

The dollar gave back some of its ‌earlier gains on Friday but remained higher on the day after U.S. President Donald Trump said ⁠he had appointed former governor Kevin Warsh as chair of the U.S. Federal Reserve. The euro was last down 0.2% at $1.1947, sterling was off 0.3% at $1.378, ​while the dollar climbed 0.5% against the Japanese yen to 153.8 ‍yen.

The dollar gave back some of its ‌earlier gains on Friday but remained higher on the day after U.S. President Donald Trump said ⁠he had appointed former governor Kevin Warsh as chair of the U.S. Federal Reserve.

The euro was last down 0.2% at $1.1947, sterling was off 0.3% at $1.378, ​while the dollar climbed 0.5% against the Japanese yen to 153.8 ‍yen. That left the dollar index, which tracks the currency against six peers 0.2% higher at 96.47.

The dollar strengthened after reports earlier in the day that Trump ⁠intended to ‌name Warsh, ⁠with the dollar index up around 0.5%. The dollar rising is "an understandable reaction as this would ‍confirm who the next Fed Chair will not be – Kevin Hassett or ​Rick Rieder," said Derek Halpenny, MUFG's head of research, Global Markets ⁠EMEA, before Warsh's appointment had been confirmed.

"Both of these candidates have been in the ⁠running and were deemed favourites at different stages, and were perceived by the markets as being inexperienced and being too close to ⁠President Trump and hence would be more easily influenced." This "is certainly not the ⁠case with ‌Kevin Warsh," Halpenny said.

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