US dollar is a little bit higher today. Some traders are looking at the recent and positive US data, and others are considering the Federal Reserves somewhat surprising decision earlier this week to put off the taper. But what seems to be offering the most help to the US dollar right now is the possibility of the Fed beginning its asset purchase program in October.
Even though the Federal Reserve decided not to begin tapering its asset purchase program at its meeting earlier this week, recent data suggests that policymakers can’t hold off for too much longer. In fact, there is speculation that October could be the month.
This speculation is being driven, in large part, by comments from James Bullard, the president of the St. Louis Federal Reserve. Bullard said that the decision to put off tapering was a close one, and that it’s possible that between now and the October meeting, there might be more evidence of an improving US economy.
The information has resulted in small gains across the board for the greenback.
At 13:48 GMT the dollar index is up to 80.4450 from the open at 80.3530. EUR/USD is down to 1.3522 from the open at 1.3530. GBP/USD is down to 1.6005 from the open at 1.6033. USD/JPY is up to 99.5600 from the open at 99.4570.
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