Rising value of U.S. dollar could delay Fed's interest rate increase

Dive Brief:

The much-anticipated hike in mortgage interest rates has become less certain as the dollar has strengthened compared with foreign currencies.
The Los Angeles Times reported this week that Federal Reserve Chair Janet Yellen and other Fed policymakers are keeping a close watch on the dollar’s performance as they decide whether to raise rates, a decision widely expected later this year.
If the Fed raises rates, it could further bolster the value of the dollar against foreign currencies, making U.S. goods more expensive for overseas buyers and diminishing earnings for American companies that do business globally.

Dive Insight:

The Fed also is keeping an eye on U.S. job growth as it decides whether to issue its first rate hike since 2006.

The U.S. Bureau of Labor Statistics reported on Friday that the economy created just 126,000 jobs in March, far lower than expectations. Some economists have speculated that the dip in job creation might convince the Fed to hold off on an interest rate increase, at least until September.