The US dollar climbed today against other currencies as the Federal Reserve signaled that it is planning to reduce the pace of its asset purchases this year. The central bank did not give specific timing for such move, but this did not bother dollar bulls.
The Federal Open Market Committee released the minutes of its July meeting today. Did the minutes say anything new? Not really. Did this prevent the dollar’s rally? No, the currency was broadly stronger after the release of the minutes.
The FOMC confirmed that it is ready to reduce the size of asset purchases, but timing of such move depends on economic data and is not set at any specific date. The Committee also reminded that reduction of asset purchases is in no way means an end to accommodative policy.
EUR/USD dropped from 1.3415 to 1.3346 as of 22:46 GMT today. GBP/USD declined from 1.5665 to 1.5628. USD/JPY advanced from 97.24 to 97.80.
If you have any questions, comments or opinions regarding the US Dollar,
feel free to post them using the commentary form below.