ROME - Future dollar gains may further drive down world food prices, which are already hovering near a six-year low, a senior economist at the United Nations Food andAgriculture Organization (FAO) said on Thursday.
"All the indications are for the (dollar) exchange rate to rise, especially if the Fed raises interest rates," FAO senior economist Abdolreza Abbassian told Reuters.
"Exchange rates have been driving the decline in prices. One cannot exclude further downward pressure on prices in coming months," he said. World food prices fell in November, FAO said in a monthly report published on Thursday.
Federal Reserve Chair Janet Yellen said on Wednesday she was "looking forward" to a U.S. interest rate hike that will be seen as a testament to the economy's recovery from recession. Her comments drove the dollar to its highest level since March 2003.
