Forex

Dollar surges after released Fed minutes and strong U.S. manufacturing data

US Dollar

The U.S. dollar was given a lift by the released minutes from the fresh policy meeting from the Federal Reserve on early Thursday. Positive figures in the United States has also helped the greenback extend its gains from the previous trade.

It was immediately strengthened the moment when the released minutes from Fed’s meeting last December 12-13 suggested a less-dovish stance. This has also shown that Fed will still incite an interest rate hike two or more times this 2018.

Policymakers from the central bank have highlighted the strong gains from the U.S. employment market and the nation’s firm economic health. The minutes also gave clarity about the worries of policymakers on low inflation. This has suggested that Fed will slowly lift rates but will still speed up if by chance inflation becomes faster.

Looking at the dollar’s performance, it edged up by 0.2 percent against its Japanese counterpart at 112.710 after touching a 2-½ on the previous day at 112.055. This came in when the greenback dropped from its best level since December at 113.750. It gained support from the release of U.S. manufacturing data which showed upbeat numbers.

Meanwhile, the euro traded below the flat line by 0.05 percent at $1.2011 after rising towards a 3-month high on the previous day at $1.2081.

In other currency news, the sterling edged lower by 0.1 percent after declining as low as 0.6 percent overnight. Last Tuesday, it slipped from a 3-1/2-month high versus the greenback at $1.3614.

 

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