US Dollar Gets Little Boost From FOMC Minutes
The US dollar remains under pressure against the Japanese yen, as investors sought asylum in a "safe" currency, fearing possible US military action against Syria. Geopolitical tension has shifted some focus from the confrontation between the US and China.
With attention on Syria, the US dollar did not garner much support from the Federal Reserve's meeting minutes released on Wednesday, showing all policymakers felt the American economy would gain more momentum and inflation would accelerate in the coming months. The dollar index against a basket of six major currencies held steady at 89.536, after having dipped to a two-week low of 89.355 yesterday.
Minutes from the March gathering of the Federal Open Market Committee showed central bankers largely hopeful about the direction in which the economy was headed, though with a few misgivings. The meeting summary noted that "all participants" expected both the economy to strengthen and inflation to rise "in coming months." The general sentiment likely fuels belief that the Fed will continue on its path of rate hikes.