Dollar Extends Gains as Investors Look Ahead to Fed Minutes

Photo of author

By Brendel Balaga

The dollar remained broadly higher on Wednesday, trading at three-and-a-half week highs against the rival commodity-hinged currencies, as investors looked ahead to the publication of the Federal Reserve’s recent policy meeting minutes due for release later in the day.

USD/JPY tacked on 0.24% to trade at 109.38.

Market players were anticipating the release of the minutes of the Fed’s most recent policy meeting, for clues on the timing and frequency of future interest rate increases.

Expectations for a rate hike heightened after figures released Tuesday showed that U.S. consumer prices last month grew at the fastest rate in more than three years.

In addition, Dennis Lockhart and President John Williams, Atlanta and San Francisco Fed Presidents both said this week that two or three rate hikes could happen this year.

EUR/USD shed 0.29%, falling to 1.1279, a level not seen since since April 25.

The greenback was lower against the pound, with GBP/USD gaining 0.62% at 1.4550 and remained weaker against the Swiss franc, with USD/CHF tacking on 0.27% to trade at 0.9832.

The U.K. unemployment rate was steady at 5.1%, meeting forecasts.

The Australian and New Zealand dollars were both lower against their American rival, with AUD/USD losing 0.82% at 0.7265 and with NZD/USD falling 0.66% to trade at 0.6768.

Elsewhere, USD/CAD inched higher, adding 0.58% to trade at 1.2982.

The U.S. dollar index, which contextualizes greenback’s standing against six rival currencies, was up 0.23% at 94.76, the highest since April 25.

Images Courtesy of DepositPhotos