U.S. Dollar Rises on Support for Tapering

The dollar advanced as minutes of the Federal Reserve’s last meeting showed officials were “broadly comfortable” with a plan to start reducing bond buying later this year if the economy improves.

The U.S. currency rose earlier as sales of previously owned U.S. homes climbed in July to the fastest pace since November 2009. Indonesia’s rupiah slumped to a four-year low and India’s rupee fell to a record as emerging-market assets declined on concern a paring of stimulus under the Fed’s quantitative-easing strategy would intensify outflows from the currencies. The Canadian dollar dropped to a six-week low as the tender of commodities-exporting nations dropped.

“It’s supportive of the tapering in the fall — I don’t think it’s enough to knock it either way, from September being favored over December or the opposite,” Brian Kim, a currency strategist at Royal Bank of Scotland Group Plc’s RBS Securities unit in Stamford, Connecticut, said in a telephone interview. “I don’t see anything here that’s a huge commitment to doing anything just yet.”


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