Dollar firms as Fed minutes fuel rate hike views, yen gains
Timilehin Adejumobi
1 min read
The dollar edged higher on Thursday after minutes from the U.S. Federal Reserve’s latest policy meeting firmed bets for a rate hike this month, while a broad risk-off mood in Asia lent some support to the Japanese yen.
Minutes of the Fed’s June meeting released on Wednesday showed that the vast majority of policymakers expect further tightening in U.S. monetary policy, even as they agreed to hold interest rates steady last month.
That sent the dollar slightly higher alongside Treasury yields while stocks slumped, as expectations grew that the Fed will resume its rate-hike campaign this month and that rates would stay higher for longer in order to tame inflation.
The euro was last 0.09% lower at $1.0843, while sterling dipped slightly to $1.02702.
The U.S. dollar index gained 0.02% to 103.36.
“The FOMC minutes seemed hawkish with some committee members favouring a rate hike, though none voted for one at the end,” said Alvin Tan, head of Asia FX strategy at RBC Capital Markets.
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