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Dollar drifts as traders cast gaze toward FOMC for taper clues

Dollar drifts as traders cast gaze toward FOMC for taper clues

本帖最後由 geemong 於 2021-9-16 18:08 編輯

Dollar drifts as traders cast gaze toward FOMC for
taper clues


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The dollar languished near the middle of its range of the past month versus major peers
on Thursday, as traders looked to next week's Federal Reserve policy meeting for
indications on how soon the U.S central bank will start to taper stimulus.

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The dollar languished near the middle of its range of the past month versus major peers
on Thursday, as traders looked to next week's Federal Reserve policy meeting for
indications on how soon the U.S central bank will start to taper stimulus.

The dollar index, which measures the currency against six rivals, was at 92.506, little
changed from Wednesday.

It reached a two-week high of 92.887 at the start of the week, only to drop to a one-week
low of 92.321 on Tuesday after a softer-than-expected inflation report. Its low for
the month was 91.941, hit on Sept. 3, when payrolls data disappointed.

"We're waiting for the FOMC next week - that remains the key focus," said Shinichiro
Kadota, senior FX strategist at Barclays in Tokyo. "I don't think the dollar is going to go
too far in either direction (before that)."

The Federal Open Market Committee's (FOMC) two-day policy meeting ending Sept. 2
2 should provide some clarity on the outlook for both tapering and eventual interest rate
hikes.

Tapering typically lifts the dollar as it suggests the Fed is one step closer to tighter
monetary policy.

It also means the central bank will be buying fewer debt assets, in effect reducing
the amount of dollars in circulation, which in turn lifts the currency's value.
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