Dollar gains on Fed taper speculation

Currencies Direct January 15th 2014 - < 1 minute read

The dollar rose across the board on Wednesday
(January 15th) after positive data and hawkish noises from
policymakers fuelled expectations the Federal Reserve will wind
down monthly bond purchases at its January meeting.

Philadelphia Fed president Charles Plosser and Dallas Fed
president Richard Fisher both said they would like to see stimulus
brought to an end quickly, before the end of 2014.

The Fed began dialling
back its massive stimulus programme
in December, but there have
been doubts about whether it would cut further this month.

Stronger-than-expected retail sales also fuelled dollar support,
with the dollar index up 0.35 per cent at 81.02.

The dollar rebounded from a two-week low against the euro, with
EUR/USD down 0.4 per cent at 1.3624.

USD/JPY climbed to 104.36, while USD/CHF rallied half a per cent
to hit 0.9072, its highest in a week.

The Aussie tumbled 0.75 per cent despite positive data from
Australia, AUD/USD fell to 0.8899, close to a three-and-a-half-year

Sterling also slipped against the dollar, with the GBP/USD
exchange rate
down 0.3 per cent at 1.6393 as markets opened in

Yesterday the pound had strengthened 0.4 per cent against the
greenback, its largest rise since December 27th.

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Currencies Direct

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