Dollar falls amid Fed taper preparation
The dollar performed poorly on Thursday morning in Asia but hovered near a one-year high. This came as the United States’ Federal Reserve prepares for its asset tapering in November 2021.
The U.S. Dollar Index that measures the greenback against other major currencies declined 0.07% to 94.287 by 11:38 PM ET (3:38 AM GMT).
The USD/JPY pair nudged 0.09% lower to 111.85.
The AUD/USD pair climbed 0.42% to 0.7205, and the NZD/USD pair jumped 0.20% to 0.6884.
The USD/CNY pair gained 0.01% to 6.4710, while the GBP/USD pair tallied an increase of 0.25% to 1.3455.
Concerns that the Fed would start tapering amid weakening global economic growth and continuously rising inflation limited the safe-haven currency’s losses. It also benefited from the ongoing standoff over the U.S. debt ceiling, which threatens to shut down the government.
Fed Chairman Jerome Powell and other central bank heads said they were keeping an eye on inflation but were cautiously optimistic that the trend would be brief.
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