U.S. dollar dips from 4-1/2-month high after Fed minutes, last flat on the day
The dollar slipped from 4-1/2-month highs to trade little changed on Wednesday after minutes of last month's Federal Reserve meeting suggested there was no consensus about the timing of a tapering of its asset purchases under the U.S. central bank's quantitative easing program.
A reduction in debt purchases is typically positive for the dollar as it means the Fed will not be flooding the financial system with cash, increasing the greenback's value.
The minutes also said most participants "judged that the Committee's standard of 'substantial further progress' toward the maximum-employment goal had not yet been met."
This means that Fed policy would remain accommodative for some time, providing no support for the dollar.
In afternoon trading, the dollar index was little changed at 93.137, sliding from a 4-1/2-month peak of 93.267.
The euro hit a session high versus the dollar after the release of the Fed minutes, rising from its lowest since April 1. It was last flat at $1.1712 .
Against the yen, the dollar rose 0.2% to 109.85 .
The dollar earlier gained ground as nagging concerns about the global economy forced investors to seek safety in the greenback.
TREASURIES-Yields fall after Fed meeting minutes, strong 20-year auction
Benchmark 10-year notes fell to 1.273%, after rising to a session high of 1.300% before the minutes were released.
Reference: Reuters
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