On Thursday, the evergreen buck weakened against a basket of key currencies after Federal Reserve meeting minutes, which pointed to uncertainty over the probable impact of the approaching Trump administration’s policies on the American economy.
The US dollar index, estimating the dollar’s strength against a trade-weighted basket of six key currencies, headed south 0.55% at three-week minimum of 101.93.
On Tuesday, the index hit peaks of 103.81, the most impressive outcome since December 2002, as sturdy American factory data drove hopes for a faster pace of monetary tightening in 2017.
The minutes from the Fed’s December 13-14 gathering disclosed that officials stressed their considerable uncertainty regarding the policy direction of Donald Trump’s incoming administration.
Trump is expected to take office on January 20. He has already outlined his economic policies.
The minutes also disclosed that policymakers assumed that Trump’s promises to drop taxes and increase infrastructure spending could potentially drive inflation, thus provoking a faster pace of rate surges this year.
The euro grew, with EUR/USD ascending 0.41%, reaching 1.0530, thus extending its recovery from the 14-year minimum of 1.0339, hit on Monday.
