Currency – The dollar to a low of a week and a half after the Fed

© Reuters. The dollar to a low of a week and a half after the Fed

The dollar was trading at highs for a week and a half against a basket of currencies on Thursday, after gains registered after the publication of the minutes of the January meeting of the federal Reserve outlining the expectations of increases faster u.s. interest rates.

The dollar index, which measures the greenback’s strength against a basket of six major currencies, was 90,11 at 03:01 AM (08:01 AM GMT), after reaching a high of 90,17, the most since the 12 February.

The index has now increased by 2% after falling to a low of three years of 88.15 in the last week.

The minutes of the monetary policy meeting of the Fed on 30 and 31 January showed that the authorities had more confidence in the american economy and that they intend to continue to raise interest rates in the short term as early as next month.

“A majority of participants noted that the prospects for economic growth increased the likelihood of a gradual strengthening of the policy is appropriate “, indicates the minutes.

The euro was at its lowest level against the dollar since 12 February, with EUR / USD at 1,2276 after having ended the previous session down 0.46%.

But the dollar declined against the yen, with USD / JPY down 0.29% to 107,45.

The demand for the yen was boosted by expectations of a monetary tightening more rapid on the part of the Fed, undermining appetite for risk.

Investors tend to fall back on the yen in a period of turbulence in the markets because the currency is backed by a current account surplus of Japan, who offers him a greater resilience than the currencies of deficit countries.

The euro also fell against the yen, with EUR / JPY down 0.37% to 131,89.

The pound sterling has lost ground against the dollar, with GBP / USD down 0.24% to a low of a week of 1,3884.

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