Dollar Recovers From Three Week Loss
The dollar rallied on Wednesday, after three weeks of losses as investors looked ahead to the minutes of the Federal Reserve’s December meeting later in the day.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.24% to 91.78 by 11:53 AM ET (16:53 GMT), pulling away from Tuesday’s three month lows of 91.47.
Investors are looking ahead to the minutes of the Fed’s December meeting at 2:00 PM ET (19:00 GMT). The central bank raised interest rates by a quarter point at its last meeting and increased its growth outlook for the economy. Traders will also be paying close attention to any indication as to how the U.S. economy is performing and any clues as to when the next rate hike will be.
The dollar inched up slightly against the yen, with USD/JPY up 0.03% to 112.31, pulling up from Tuesday’s two-week lows of 112.04.
The euro was unmoved from its earlier losses during the day, as it eased after a rally spurred by expectations that the European Central Bank will start to wind down its stimulus program later this year. EUR/USD was trading at 1.2026.
The single currency hit a four-month high of 1.2080 on Tuesday, putting it within striking distance of a September peak of 1.2092, its strongest level since early 2015.
Meanwhile sterling fell against the greenback, with GBP/USD slumping 0.52% to 1.3518.
The Australian dollar inched forward against the dollar, with AUD/USD rising 0.10% to 0.7837 while the New Zealand was flat, with NZD/USD trading at 0.7100.