Dollar Moves Slightly Ahead of Fed Meeting Minutes, Yen Weakens
The US dollar traded in a narrow range ahead of the release of the Federal Reserve's meeting minutes on Tuesday, which are expected to provide insight into the divergence of views among central bank policymakers. The Bloomberg Dollar Index was virtually unchanged after falling to its lowest level since early October last week. This year, the dollar has fallen more than 8% and is expected to post its biggest annual decline since 2017.
Chris G. Collins, US economist at Bloomberg Economics, expects the minutes of the December 9-10 FOMC meeting to show that meeting participants had very different views on the near-term policy path. This will provide further clues about the future direction of US monetary policy, a key concern for global market participants.
Meanwhile, the Japanese yen weakened against all other major currencies, with USD/JPY rising 0.2% to 156.33. However, the pair has fallen 0.6% so far this year. Market participants are also awaiting a speech by Japanese Prime Minister Sanae Takaichi, which is expected to influence the yen's movements.
Other major currencies, such as EUR/USD, remained largely unchanged at 1.1775, trapped between the 1.1750 and 1.1800 option strikes expiring on December 30 and 31. GBP/USD edged down 0.1% to 1.3500, while AUD/USD edged up 0.2% to 0.6706.
In the bond market, Treasury yields declined slightly, with the 10-year yield at 4.11%. Treasury volatility remained near multi-year lows, with the largest annual decline since 2009, indicating a relatively stable market amidst the ongoing uncertainty. (asd)
Source: Newsmaker.id
