Dollar advances on Kansas City Fed's inflation comments (Bloomberg) (07-05-2008)

May 7 (Bloomberg) -- The dollar gained versus the euro as Federal Reserve Bank of Kansas City President Thomas Hoenig spoke of “serious” inflation pressures that could force the central bank to raise interest rates.

The dollar advanced to $1.5480 against the euro as of 7:20 a.m. in London, from $1.5532 in New York yesterday, when it fell to $1.5594, the lowest level since May 1. The U.S. currency also rose to 104.97 yen from 104.77 yen. The euro fell to 162.51 yen from 162.71.

In the U.K., the pound fell after Nationwide Building Society said an index of sentiment taken from the responses of 1,000 people declined seven points to 70, the lowest since the survey began in May 2004. The pound slid to $1.9688 from $1.9738.

The U.S. currency rose to 1.0542 Swiss francs from 1.0521. It also gained to 7.5037 versus the South African rand from 7.4975. The Australian dollar fell to 94.64 U.S. cents from 94.97 cents late yesterday in New York, while the New Zealand dollar declined to 78.61 U.S. cents from 79.15 cents.

Source Bloomberg