Dollar perks up with Fed hike seen back in play

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TOKYO/SYDNEY: The dollar held firm on Tuesday, retaining its rebound from a five-month low as two Federal Reserve officials supported the an interest rate hike in coming months while the Australian dollar gained on comments from that country´s central bank chief.

The dollar index last traded at 95.277, pulling further away from a five-month trough of 94.578 set on Friday.

Atlanta Fed President Dennis Lockhart said there was sufficient economic momentum to justify a further rate hike "possibly as early as the meeting scheduled for end of April".

San Francisco Federal Reserve Bank President John Williams told Market News International that April or June would be "potential times for a rate hike".

Their comments came a week after the Fed kept rates unchanged and cut in half the number of projected hikes to a mere two this year - a move seen by many as dovish.

While dollar bulls were heartened by the latest comments, the reaction in fed funds futures was muted as some investors held back ahead of speeches by more dovish Fed officials including Chicago Fed President Charles Evans.