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U.S. Dollar Gains Before Fed Minutes

The dollar gained against most of its major peers before the Federal Reserve releases minutes of its last meeting as investors weighed the timing of the first interest-rate increase since 2006.

The yen was near a one-month high versus the euro after the International Monetary Fund cut its global growth forecast, boosting demand for haven assets. Australia’s dollar fell after the statistics bureau dropped its seasonal adjustment of jobs data for the past three months. Finance ministers and central bankers from the Group-of-20 economies will meet this week.

“If the Fed minutes today show discussions about specific timing of their interest-rate increase, that would boost the likelihood that the next policy statement will alter the wording around keeping borrowing costs low for an extended period,” said Junichi Ishikawa, an analyst at IG Markets in Tokyo. “That will spur dollar buying.”

Bloomberg [1]

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