Dollar Gains Slightly, Focus on Fed Minutes
The US dollar strengthened slightly on Tuesday, with the Bloomberg Dollar Spot Index rising less than 0.1%. This gain reversed losses seen in earlier trading in Asia and London, although trading volumes remained low as the year draws to a close. The dollar has fallen about 8.2% this year, its biggest decline since 2017, and markets are now awaiting the minutes from the Federal Reserve's December meeting, scheduled for release at 2:00 p.m. New York time. The minutes are expected to provide further insight into the divergence of opinion among Fed policymakers.
G10 currencies traded in a narrow range, with the primary focus on the Chinese yuan, which strengthened past the key 7-per-dollar level for the first time since 2023. USD/CNH fell slightly to 6.9919. According to currency strategist Shaun Osborne of Scotiabank, this yuan strength could pave the way for further strengthening of other regional currencies, such as the Japanese yen and the Korean won. Meanwhile, major currency pairs like EUR/USD and GBP/USD moved slightly, with EUR/USD down 0.1% to 1.1763, and GBP/USD weakening 0.3% to 1.3471.
Meanwhile, the market remains eagerly awaiting other important data that will influence market sentiment, including reports on inflation and interest rate policy, which could provide further clues about the Fed's future policy direction.
Source: Newsmaker.id
