Dollar climbs as Fed announces start of asset tapering

The dollar recovered on Thursday morning in Asia following the United States’ Federal Reserve’s decision to start its asset tapering in November.

The U.S. Dollar Index that measures the greenback against other major currencies nudged 0.15% higher to 93.998.

The USD/JPY pair tallied an increase of 0.20% to 114.20.

The AUD/USD pair jumped 0.12% to 0.7454, while the NZD/USD pair dropped 0.06% to 0.7154.

The USD/CNY pair shed 0.19% to 6.3941, while the GBP/USD pair slid 0.18% to 1.3659.

The pound maintained its Wednesday’s 0.51% gain, while the euro surged to $1.161.

The Fed announced its newest policy setting yesterday, declaring the start of its asset tapering this November. However, the central bank retained its interest rate, with Chairman Jerome Powell saying the Fed would be “patient” with its decision on the matter.

Investors are still waiting for the Bank of England’s policy decision to come out today.