The dollar stood near a seven-week high against the euro and the Aussie on Thursday, as expectations the Federal Reserve is likely to stay on its aggressive rate-hike path, reinforced by minutes from its last policy meeting, set the tone for markets.
Nearly all Fed policymakers favoured a scale down in the pace of interest rate hikes at the U.S. central bank’s last policy meeting, minutes from the Jan. 31-Feb. 1 FOMC meeting showed on Wednesday.
However, they also indicated curbing unacceptably high inflation would be the “key factor” in how much further rates need to rise.
The dollar paused its ascent on Thursday after gaining broadly on the back of the release.
The euro edged marginally higher to $1.0608 on Thursday, but was pinned near a roughly seven-week trough of $1.0598 hit in the previous session.
Similarly, the Aussie rose 0.15% to $0.6815, after falling more than 0.7% on Wednesday, further pressured by a miss in forecasts for Australian wage growth last quarter.
Trading was thinned on Thursday with markets in Japan closed for a holiday.
This report’s information was first seen on ZAWYA; to read more, click this link.
