Dollar Set to Snap Two-Day Losing Streak as Rates Find Footing By

Dollar Set to Snap Two-Day Losing Streak as Rates Find Footing By

© Reuters.

By Yasin Ebrahim – The dollar rose against a basket of major currencies Wednesday, and looked set to snap a two-day losing streak as U.S. bond yields bounced back from lows session despite the Federal Reserve’s March meeting minutes confirming the central bank is not rush to hike rates.

The , which measures the greenback’s strength against a trade-weighted basket of six major currencies, rose 0.09% to 92.51

“Participants noted that it would likely be some time until substantial further progress toward the Committee’s maximum-employment and price-stability goals would be realized and that, consistent with the Committee’s outcome-based guidance, asset purchases would continue at least at the current pace until then,” the minutes showed.

The minutes didn’t offer any new insight into the Fed’s thinking on monetary policy, but rates turned positive, pushing the dollar higher.

The rose 1 basis point to 1.665% after falling to 1.628% at the lows of the day.

The dollar had made poor start to the week falling for two-straight days, but some were wary of suggesting a downtrend was forming ahead of the minutes.

“The greenback has been showing signs of weakness this week, especially versus the low-yielders, but it seems too early to conclude this is the start of a broader USD downtrend just yet,” ING said.

The dollar and yields will come into focus again on Thursday as Fed Chairman Jerome Powell is set to participate at an IMF panel discussion on global growth.


Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Source link

Leave a comment

Send a Comment

Your email address will not be published.

Enter text shown below: