The dollar gained versus the majority of its 16 most-traded peers after minutes from the Federal Reserve’s last meeting showed several policy makers said the central bank should vary the pace of its bond purchases.
New Zealand’s dollar slumped the most in almost nine months against the U.S. currency after Reserve Bank Governor Graeme Wheeler said the monetary authority was prepared to step in to prevent it from strengthening. The greenback extended gains against the euro as the Fed’s Jan. 29-30 meeting minutes show policy makers remain divided about the strategy of buying bonds, easing concern it will erode the value of the currency.
“Some people might say initially that it’s slightly hawkish, considering that they’re having these discussions,” Brian Kim, a currency strategist at Royal Bank of Scotland Group Plc’s RBS Securities unit in Stamford, Connecticut, said in a telephone interview. “We also had several officials warning not to reduce easing too soon. At this point, there’s a little bit for everyone, unfortunately.”
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