Currency – The dollar to a one-week summit in view of the Fed

© Reuters. The dollar at a one-week summit in view of the Fed

The dollar reached heights of a week against a basket of currencies on Wednesday, as investors await the minutes of the last federal Reserve meeting for further indications on the pace of future interest rate increases.

The dollar index, which measures the greenback’s strength against a basket of six major currencies, was up 0.12 per cent to 89,75 at 03:24 AM (08:24 GMT).

The index rose after falling to 88,15 Friday, the weakest since December 2014.

The Fed was expected to publish on Wednesday the minutes of its January meeting and your warmongering could strengthen expectations of monetary tightening accelerated this year and boost the dollar.

The dollar has weakened in recent months, expectations of an acceleration in interest rates by the Fed were offset by a series of downward pressures.

The concern that the large tax cuts for corporations and the increase in government spending will have a negative impact on the u.s. budget deficit, which is expected to swell to nearly $ 1 billion in 2019 have exercised pressure on the currency.

The tax cuts and spending plans could turn against the government by overheating an economy that is already strong and leading to renewed adverse inflation.

The dollar was up versus the yen, with USD / JPY rising 0.31% to 107,03, extending its rebound from the lowest of last 15 months of 105,55

The euro is declining, with the EUR/USD down 0.15% to 1,2319, backward, even compared to the highest three years of 1,2554 reported Friday.

In the euro zone, data showed that the growth of the French private sector has slowed, but remained strong in February.

The british pound was also lower, with GBP/USD down 0.17% to 1,3972, before the latest jobs report released in the Uk later in the day.

Traders are waiting for the figures on the growth of wages, which could help to emphasize the expectations of a rate hike by the Bank of England in may.

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