Dollar falls after FOMC minutes

new York (July 9)  The dollar reversed earlier gains against most major currencies, with the exception of the yen, in the wake of minutes from the latest Federal Reserve meeting Wednesday that showed it would end its asset-purchasing program in October.

Currency, equity and treasury investors interpreted the Fed minutes as a continuation of the central bank’s accommodative policy stance, which effectively means the bank will sit on its hands for a couple of months until QE ends, said Kathy Lien, managing director of FX Strategy for BK Asset Management. This stance will likely keep the dollar weak at least until the bank’s September meeting.

The ICE dollar index  DXY -0.18%   , which measures the greenback against a basket of six rivals, fell to 80.032, compared with 80.176 late Tuesday.

Against the Japanese yen  USDJPY -0.02%   , the dollar rose to ¥101.61 from ¥101.57 on Tuesday.

“Dollar bulls will be crossing their fingers in the hope of a more hawkish tone to the minutes,” Angus Campbell, senior analyst at FxPro, said in a note.

The euro  EURUSD +0.01%    rose slightly to $1.364 from Tuesday’s level of $1.361.

The pound  GBPUSD -.00%    rose to $1.715, from $1.713 Tuesday, while the Australian dollar  AUDUSD -0.03%    was trading at 94.13 U.S. cents, up from 93.99 U.S. cents.

Source: arketWatch