Dollar rises over expectations on earlier Fed asset tapering
The dollar climbed on Tuesday morning in Asia due to rising expectations on an earlier-than-expected asset tapering by the United States’ Federal Reserve.
The U.S. Dollar Index that measures the greenback against other major currencies jumped 0.04% to 92.977.
The USD/JPY pair gained 0.06% to 110.34, with Japanese markets reopening after a holiday.
The AUD/USD pair dropped 0.10% to 0.7326, while the NZD/USD pair shed 0.23% to 0.6975.
The USD/CNY pair slid 0.03% to 6.4835, and the GBP/USD pair declined 0.05% to 1.3836.
President Raphael Bostic of Atlanta Fed Bank expects the start of asset tapering in the fourth quarter. However, continuous improvement in the jobs market could push it earlier.
The U.S. jobs report last Friday showed non-farm payrolls increased by 943,000 and the unemployment rate declined to 5.4% in July.