Investing.com – The u.s. dollar was little changed Wednesday in Asia, while traders await the minutes of the meeting of the u.s. federal Reserve’s January scheduled for later in the day.
At its meeting of 30 January, the central bank kept its rates unchanged and said that it was patient in the face of new rate increases.
“First, (the Fed) has effectively ruled out any rate hike this year,” said Darrell Delamaide d’Investing.com. “Now, the message is that the Fed will not reduce its balance sheet much more than it has already done so and continue to be at fairly high levels.”
“It could even continue to ease quantitatively – the purchase of bonds with a currency created from scratch – as a new tool for monetary policy rather than as a simple emergency measure.”
The dollar index is up to 96,393, at 1: 37 p.m. ET (06h37 GMT), up 0.05%.
The USD / JPY pair rose 0.2% to 110,84. The japanese currency was boosted on Tuesday after the governor of the Bank of Japan, Haruhiko Kuroda, has declared to the japanese parliament that the central bank would consider further easing if the yen stronger, threatening to bring down the prices and activity.
“The BOJ has many options, even if she wanted to act. But the global trend – starting with the United States, Europe and Australia – is moving towards the transparency of the central bank and the position of the BOJ is in agreement with the trend, ” said Koji Fukaya, president of FPG Securities, in a Reuters report.
The pair USD / CNY has lost 0.4% to 6,7258. According to Frances Cheung, analyst of Westpac, in a note cited by FXStreet, the pair is expected to evolve.
“The USD / CNY is likely to trade in these waters, with an upside risk, while we remain cautious vis-à-vis the development of commercial relations between the United States and China,” said Cheung.
Another series of trade negotiations between China and the United States began this week in Washington, after the end of the last meeting without any agreement. Earlier this week, the us president, Donald Trump has said that the talks with China were taking place “very well.”