Fed minutes support dollar’s strengthening
The US dollar saw a boost to its value yesterday (August 22nd) on the back of the release of the latest minutes from the Federal Reserve.
Although the Fed did not indicate when the winding down of its monetary stimulus package will take place, the currency still strengthened.
According to Andy Scott, premier account manager at foreign currency exchange brokers HiFX, the dollar bounced back from a two-month low against the pound by recording a one per cent jump in value after the minutes were released by the Fed.
"It also strengthened against the euro though by less, having been at a six-month low against the single currency of 1.3450 on Tuesday," he said.
Mr Scott added that the current policy divergence between the US and European central banks is expected to favour the dollar in the coming weeks and months.
Earlier this week, the Indian currency the rupee dropped to a new record low against the US dollar. It has slipped by 16 per cent against the dollar in the last three months.
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