The U.S dollar on Thursday, January 5, depreciated against the yen and euro during early Asian trade, driving overnight weakness.
The dollar tumbled 0.8% against the yen and 0.5% against the euro, with the sharpest moves occurring after the main start of bond and equity trading in Tokyo.
The WSJ Dollar Index, a measure of the U.S. dollar against a basket of major currencies, was down 0.25% at 92.72.
The U.S. dollar fell against the yen and euro after Federal Reserve minutes signaled uncertainty about Donald Trump’s impact on the economy.
The U.S. dollar fell against the yen and euro after Federal Reserve minutes signaled uncertainty about Donald Trump’s impact on the economy.
The U.S. currency came under pressure overnight after minutes from the Fed’s Dec. 13-14 meeting showed central bankers grappling with “considerable uncertainty” about the new U.S. administration’s possible impact on the economy.
Central bank debate on the potential impact of a Trump fiscal stimulus suggests Fed policy may be tighter than expected in 2017—a view that fits with a sustained rally in the dollar since Mr. Trump’s election victory.
The dollar was also lower against other currencies, with the euro rising to $1.0542 in early morning trade, compared with $1.0489 late Wednesday. The U.S. currency was also weaker against peers such as the Singapore dollar and Chinese yuan, Wall Street Journal reports.
