U.S. Dollar Surges after QE End

The dollar climbed to a four-week high after the Federal Reserve judged the U.S. economy strong enough to end its asset-purchase program. Industrial metals and oil fell with Hong Kong stocks.

The Bloomberg Dollar Spot Index gained 0.1 percent by 12 p.m. in Tokyo, with the U.K. pound weakening 0.2 percent and South Korea’s won leading emerging-market currencies lower. Nickel retreated 1.4 percent and West Texas Intermediate crude oil slid 0.2 percent. Hong Kong’s Hang Seng Index dropped 0.3 percent after its biggest two-day rally in seven months. The NZX 50 Index advanced to a record in Wellington while Standard & Poor’s 500 Index futures were little changed.

The Fed cited job gains in its decision to wind up the unprecedented bond-buying program, which has suppressed U.S. yields and fueled capital inflows into emerging-market assets. Officials retained a commitment to keep key interest rates low for a “considerable time.” An update on third-quarter U.S. gross domestic product is due today, and euro-area confidence data is scheduled before inflation tomorrow, when the Bank of Japan will report on monetary policy.

Bloomberg

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