Business News Asia
The dollar index fell 0.1% to 96.733 against the six major currencies in a basket of currencies.
Investors expected that high inflation would force the Fed to raise interest rates faster than expected; while the index is up 2.77% this month.
According to the minutes of the last Fed meeting, many sides were in favor of further taper of asset purchases and faster rate hikes to battle rising inflation.
In addition, labor market data and consumer spending exceeded economists’ expectations which, according to the Fed Chairman, is an important indicator for further monetary policy.
At 115.355 yen, the dollar was slightly higher against the yen. A level that has not been seen since January 2017.
As for the euro, it rose 0.13% to $1.1215. It is still at its lowest level in 17 months after German business confidence fell for the fifth month in a row.
The ECB chairman said officials had discussed the inflation issue but concluded that rising inflation may be transitory.
The pound rose 0.14% to $1.33465 after falling to a low of $1.3317 for the first time in 11 months.
Investors continue to watch the Bank of England’s next move as speculation continues that interest rates will make a move in mid-December.
The BOE irritated many investors when it left interest rates at a record low earlier this month, contrary to what had been announced. According to monetary policy officials, however, a change in interest rate policy should be made as soon as possible, as there is fear that inflation could run away.
The Australian dollar rose 0.06% to $0.720 and remains at its lowest level since September.
The New Zealand dollar was marginally lower at $0.6870 after falling near a three-month low of $0.6856 the previous day following the country’s central bank raising interest rates by a quarter percentage point to 0.75%.
The yuan fell 0.05% to 6.3885 dollars.
The baht was 33.37 baht per dollar.