Dollar hits 9-month high as Fed on track to taper this year
The dollar rose to a nine-month high against its major peers on Thursday, on expectations that the Federal Reserve will start tapering its huge stimulus this year.
The dollar index, which measures the U.S. currency against six rivals, climbed as high as 93.502, its strongest since Nov. 5, before trading 0.26% higher at 93.464.
The euro fell as low as $1.16655 for the first time since Nov. 4, while the Aussie sank to $0.7198, a level not seen since Nov. 5, and the kiwi slid to $0.68465, the weakest since Nov. 13.
The greenback rose as high as 110.225 yen.
In minutes of the Federal Open Market Committee’s July 27-28 meeting released on Wednesday, Fed officials saw the potential to ease bond-buying stimulus this year if the economy continues to improve as expected, although the condition of “substantial further progress” toward maximum employment had not yet been met.
Sterling touched a four-week low of $1.3712. Canada’s loonie also reached a four-week low of C$1.2699 per greenback.
China’s yuan slid to a three-week low in offshore trading of 6.4996 per dollar.
Reference: Reuters
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