The dollar weakened after the Federal Open Market Committee released the minutes of its policy makers’ meeting, which signaled about the second round of quantitative easing.
The minutes said:
Many participants noted that if economic growth remained too slow to make satisfactory progress toward reducing the unemployment rate or if inflation continued to come in below levels consistent with the FOMC’s dual mandate, it would be appropriate to provide additional monetary policy accommodation.
The analysts expect the policy makers of the Federal Reserve would announce the increase of the Treasury purchases at their meeting on November 3rd.
However, some officials “thought that additional accommodation would be warranted only if the outlook worsened and the odds of deflation increased materially”. Thomas M. Hoenig said that “the current high levels of unemployment were not caused by high interest rates but by an extended period of exceptionally low rates earlier in the decade that contributed to the housing bubble and subsequent collapse and recession”.
EUR/USD rose from 1.3923 to 1.3958 as of 2:40 GMT today, while GBP/USD advanced to 1.5821 from 1.5807. USD/JPY rose today to 81.85 after declining yesterday from 82.06 to 81.71.
If you have any questions, comments or opinions regarding the US Dollar,
feel free to post them using the commentary form below.
Be First to Comment