US Dollar dwindles after FOMC minutes

The US Dollar Index (DXY) measured against a bucket of six major currencies on an average closed out the session in a downbeat tenure on Wednesday

by Sourav D
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US Dollar dwindles after FOMC minutes

On Wednesday, the US Dollar Index (DXY) measured against a bucket of six major currencies on an average closed out the session in a downbeat tenure, as Minutes from the US Fed’s December 13-14 policy meet released late in the day had unveiled that all Fed policymakers had agreed to a gradual rate-hike throughout the 2023 in order to tame a teetering inflation-surge across the country, eventually spreading frets of a macabre melt-down in US economy in a near-term outlook.

Apart from the FOMC Minutes, ISM (Institute for Supply Management) data had unveiled that the US factory activities had been contracted last month, adding to further drag on the US Dollar. Besides, uncertainties linked to China’s abrupt easing of pandemic-restriction had fuelled up the flames further.

In tandem, amid such garrulous economic landscape, benchmark US 10-year Treasury bond yields fell as much as 0.02 percentage point to 3.69 per cent, illustrating an utter uncertainty looming over the horizon regarding the US Fed’s aggressive rate-hike cycle.

US Dollar dips after FOMC Minutes

Citing statistics, in the day’s FX market wind-down, the US Dollar Index (DXY) measured against a basket of six major currencies on an average fell 0.28 per cent to 103.94, while the bloc’s common currency euro jumped 0.46 per cent against its American counterpart to $1.0603.

Apart from that, British Pound soared as much as 0.73 per cent against its American peer to $1.2055, while commodity-linked Canadian Dollar gained 1.42 per cent to $0.7420. Apart from that, Japanese Yen, which has lost its safe-haven status following a flurry of political turbulence including the assassination of former PM Shinzo Abe, lost 1.23 per cent to 132.63 Yen per Dollar, while risk-sensitive loonies like of Aussies fell as much as 1.11 per cent to $0.6833, as grimmer economic outlook appeared to have jolted the Chinese-export oriented currency.

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