Forex – Dollar Dips after Fed Minutes, Upbeat U.S. Data

© Reuters. Dollar dips after Fed minutes, upbeat U.S. data

Investing.com – The dollar dipped on Thursday after ending the previous session higher as upbeat U.S. data and the minutes of the Federal Reserve’s latest policy meeting helped it recover from recent losses.

The , which measures the greenback’s strength against a trade-weighted basket of six major currencies, edged down 0.07% to 91.83 by 02:58 AM ET (07:58 AM GMT).

On Tuesday, the index had fallen to three-and-a-half month lows of 91.47.

The dollar gained ground on Wednesday after robust U.S. data.

It also found support after the minutes from the Fed’s December meeting showed that could require them to raise interest rates at a faster pace in 2018 than last year.

Fed officials have penciled in three rate increases this year and two in 2019.

Higher interest rates tend to boost the dollar by making the currency more attractive to yield-seeking investors.

The euro moved higher, with rising 0.17% to 1.2035 after losing around 0.4% on Wednesday. The single currency had hit a four-month high of 1.2080 on Tuesday, putting it within striking distance of a September peak of 1.2092, its strongest level since early 2015.

The dollar was little changed against the yen, with at 112.54, having pulled up from Tuesday’s two-and-a-half week lows of 112.04.

The pound was steady, with at 1.3520 after sliding 0.57% the previous day to pull back from a three-and-a-half month high of 1.3612.

Meanwhile, the Australian and New Zealand dollars were higher, with rising 0.22% to 0.7852 and adding 0.47% to trade at 0.7123.

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