Dollar weakens on uncertain Fed stance

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NEW YORK: The dollar again weakened against the euro, the yen and the British pound on Thursday (Friday in Manila) as markets continued to absorb ambivalent signals from the US central bank.

Towards 2100 GMT, the euro was at $1.1354, up from $1.1287, levels not seen since the fears created by Britain’s June vote to exit the European Union.

The dollar sank below the 100 yen mark, falling to 99.94 yen from 100.28. The pound was at $1.3170, up from $1.3038.

The US Federal Reserve on Wednesday released minutes from its July 26-27 meeting in which members said they wanted to keep “options open” but remained divided on the need for interest rate increases in the near-term.


The remarks did not give any new and unambiguous sign of which way policy might head.

“It’s really mostly dollar selling [after]yesterday’s FOMC minutes release, which was much less hawkish than the market thought it would be,” said Boris Schlossberg of BK Asset Management, referring to the Federal Open Markets Committee, the Fed’s policy body.

The euro was rising on “momentum buying,” he tol.

AFP

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