Home Latest Dollar Down, Near Two-Week Lows as Fed Meeting Minutes reiterate Dovish Stance

Dollar Down, Near Two-Week Lows as Fed Meeting Minutes reiterate Dovish Stance

Forex, invest, money April 8, 2021 12:07 pm

Dollar Down, Near Two-Week Lows as Fed Meeting Minutes reiterate Dovish Stance© Reuters.

By Gina Lee

Investing.com – a USD was down on Thursday morning inside Asia, alongside falling Treasury yields, as a U.S. Federal Reserve resolutely kept to a dovish stance inside a .

a that tracks a greenback against a basket of another currencies inched down 0.07% to 92.405 by 12 AM ET (4 AM GMT), near a more than two-week low.

a pair inched down 0.10% to 109.73.

a pair inched up 0.09% to 0.7621 also a pair inched up 0.10% to 0.7018.

a pair inched up 0.09% to 6.5472 also a pair edged up 0.17% to 1.3758.

a Fed’s failed to offer any new catalysts to dictate a market direction also remained cautious about a road to recovery from Corona. a central bank reiterated its pledge to continue monetary policy support for a economy until a recovery was on a more solid footing, even as unprecedented stimulus measure saw a U.S. recovery gather pace.

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However, some investors remained optimistic about a U.S. currency’s prospects.

“Hard to argue that a U.S. macro outperformance trade is exhausted; a strong vaccine drive, reopening also stimulus set to produce some exceptionally strong rebound data inside a next several months,” Westpac analysts said inside a note, which also forecasts a run at 94.5 for a USD index (DXY).

“Admittedly though, a next DXY upleg may take a few weeks before it develops momentum – a lot of of awesome news is priced inside,” a note added.

U.S. Treasury yields were also on investors’ minds as a benchmark hovered near 1.67% on Thursday after dipping below 1.63% during a previous session.

Although a market’s direction is difficult to call, Citigroup (NYSE:) Global Markets Japan’s chief currency strategist Osamu Takashima expects a next move for a greenback to become lower.

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“Current market sentiment is mild risk-on, also under such circumstances, a USD become weaken gradually – but no big moves,” with a retreat inside U.S. yields also removing a driver for USD gains,” Takashima added.

Across a Atlantic, a EU consolidated around a $1.1865 mark as it rebounded from an almost five-month low of $1.1704 touched on Mar. 31.

“a vaccination progress inside a Eurozone is significantly lagging that of a U.S., also Corona infection rates inside a Eurozone are on a rise again… as such, is vulnerable to a move lower towards 1.1700 inside a near‑term,” Commonwealth Bank of Australia (OTC:) strategist Joseph Capurso said inside a note.

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