U.S. Dollar Falls As Fed Minutes Show Concerns Over Inflation
12 Oktober 2017 - 5:42AM
RTTF2
The U.S. dollar dropped against its key counterparts in the
Asian session on Thursday, after the minutes from the Federal
Reserve's latest meeting showed that Fed officials were concerned
over inflation, with several of them worried about another rate
hike later this year.
The minutes from the Federal Reserve's September 19-20 meeting
showed a detailed debate over whether stubbornly low inflation was
transitory or permanent.
Several Fed officials said their decision to move forward with
another rate hike this year would be dependent on more inflation
data in the next few months.
"Many participants expressed concern that the low inflation
readings this year might reflect not only transitory factors, but
also influence the developments that could prove more persistent,"
it showed.
Investors await U.S. consumer inflation data for September on
Friday for more insights about monetary policy.
The greenback dropped to an 8-day low of 0.9712 against the
franc and more than a 2-week low of 1.1880 against the euro, from
Wednesday's closing values of 0.9732 and 1.1858, respectively. The
next possible support for the greenback is seen around 0.96 against
the franc and 1.20 against the euro.
The greenback reversed from an early high of 112.52 against the
yen, edging down to 112.24. If the greenback falls further, 111.00
is possibly seen as its next support level.
The greenback slid to an 8-day low of 1.3265 against the pound
early in the Asian session and held steady thereafter. The pair
finished Wednesday's trading at 1.3223.
The greenback weakened to near a 2-week low of 1.2433 versus the
loonie, weekly lows of 0.7119 against the kiwi and 0.7833 against
the aussie, compared to yesterday's closing values of 1.2453,
0.7081 and 0.7788, respectively. The greenback is seen finding
support around 1.23 against the loonie, 0.72 against the kiwi and
0.79 against the aussie.
Looking ahead, Eurozone industrial production for August is due
in the European session.
In the New York session, U.S. producer prices for September and
weekly jobless claims for the week ended October 7 as well as
Canada new housing price index for August are set for release.
At 10:30 am ET, the European Central Bank President Mario Draghi
and Federal Reserve Governor Lael Brainard participate in a panel
discussion about monetary policy at the Peterson Institute for
International Economics, in Washington DC.
Simultaneously, Federal Reserve Governor Jerome Powell will give
a speech titled "Prospects for Emerging Market Economies in a
Normalizing Global Economy" at the Institute of International
Finance Annual Membership Meeting, in Washington DC.
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