Forex News: U.S. Dollar Higher After Fed Minutes

U.S. Dollar Higher After Fed Minutes

(RTTNews) - The U.S. dollar was higher against its major counterparts in the New York session on Wednesday, after the minutes of the Federal Reserve's latest policy meeting showed a split among policymakers for lowering the policy rate by 50 basis points at the meeting.

In light of the progress on inflation and the balance of risks, all participants agreed that it was appropriate to ease the stance of monetary policy, the minutes from the September 17-18 meeting showed.

A substantial majority of participants supported lowering the target range for the federal funds rate by 50 basis points observing that this adjustment in monetary policy would help align it more closely with recent inflation and labour market indicators.

Some participants noted that there had been a plausible case for a 25 basis point rate cut at the previous meeting and that data over the intermeeting period had provided further evidence that inflation was on a sustainable path toward 2 percent while the labor market continued to cool.

Fed officials noted that if the data came in about as expected, with inflation moving down sustainably to 2 percent and the economy near maximum employment, it would likely be appropriate to move toward a more neutral stance of policy over time.

The greenback climbed to near 2-month highs of 1.0935 against the euro, 0.8609 against the franc, 149.35 against the yen and 1.3710 against the loonie, off its early lows of 1.0980, 0.8565, 148.00 and 1.3643, respectively. The currency is seen finding resistance around 1.08 against the euro, 0.89 against the franc, 150.00 against the yen and 1.38 against the loonie.

The greenback appreciated to more than a 3-week high of 0.6707 against the aussie and near a 2-month high of 0.6052 against the kiwi, from its early lows of 0.6761 and 0.6143, respectively. The currency is poised to challenge resistance around 0.65 against the aussie and 0.58 against the kiwi.

The greenback rebounded to 1.3061 against the pound. This may be compared to an early nearly 4-week high of 1.3055. The currency is poised to challenge resistance around the 1.29 level.

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