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.
Find out about commodities trading and learn CFD strategies at City Index
Comments are closed.
From time to time, City Index Limited’s (“we”, “our”) website may contain links to other sites and/or resources provided by third parties. These links and/or resources are provided for your information only and we have no control over the contents of those materials, and in no way endorse their content. Any analysis, opinion, commentary or research-based material on our website is for information and educational purposes only and is not, in any circumstances, intended to be an offer, recommendation or solicitation to buy or sell. You should always seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks, if you are at all unsure. No representation or warranty is made, express or implied, that the materials on our website are complete or accurate. We are not under any obligation to update any such material.
As such, we (and/or our associated companies) will not be responsible or liable for any loss or damage incurred by you or any third party arising out of, or in connection with, any use of the information on our website (other than with regards to any duty or liability that we are unable to limit or exclude by law or under the applicable regulatory system) and any such liability is hereby expressly disclaimed.