Dollar rises against Euro ahead of Fed Minutes
The dollar recovered Wednesday from recent losses against the euro ahead of the release of minutes from the Federal Reserve’s January policy meeting.
The dollar USDJPY, -0.03% traded flat at 19.19 yen, compared with ¥119.25 late Tuesday in New York. The euro EURUSD, -0.67% fell to $1.1355 from $1.1418 following news that Greece will seek an extension to its loan agreement. The common currency EURJPY, -0.71% also fell to ¥135.60 from ¥136.18.
Earlier in the session, the dollar traded higher against the yen after Bank of Japan Gov. Haruhiko Kuroda ruled out more stimulus measures in the near term and suggested that the central bank would work to keep interest rates stable.
Several analysts expected the release of minutes from the Federal Open Market Committee’s January meeting to trigger further losses in the dollar, as the recent weakness in the world’s reserve currency casts doubt on the future of the eight-month long dollar rally.
“With the dollar failing to gain further momentum at these levels the inspiration to take profit on recent rallies could be present for many participants,” wrote Lennon Sweeting, a currency dealer at USForex.
In Europe, meanwhile, the standoff between Athens and its creditors appeared to ease. Reports emerged saying Greece will soon ask for an extension of its current bailout from its creditors. The extension could be for a period of four to six months to prevent the current rescue deal from expiring at the end of the month.
Meanwhile, the British pound GBPUSD, +0.43% moved higher against the dollar after the rate-setting U.K. Monetary Policy Committee voted unanimously in February to stay pat on the central bank’s benchmark interest rate at 0.5% and bond-buying program, according to minutes of the panel’s meeting. But there were some diversions between members over the next move. The pound was last at $1.5475, its highest level since the beginning of 2015, compared with $1.536 before the meeting.
The WSJ Dollar Index BUXX, +0.20% a measure of the dollar against a basket of major currencies, was up 0.05% to 85.40.
Source: MarketWatch
