Stock Market Watch

Forex Market Update: Dollar Index Sharply Lower as Investors Eye Fed’s Minutes

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The U.S. dollar turned sharply lower against major traded currencies on Tuesday even as yields on benchmark U.S. treasuries slipped as market participants wait for some clarity over the tapering of the bond purchase program by the Federal Reserve. The trading volume was reported to be too low on Tuesday.

The Fed is scheduled to release its minutes from the most recent open market committee meeting (FOMC) on Wednesday.

However, strategists believe that the dip in the U.S. dollar is good buying opportunity, which reflects growing expectation that the Fed could soon eventually announce the beginning of the tapering process.

“The big players are missing and volumes are nearly 50 percent lower than we saw in April so price moves can get exaggerated. To us, any dip in the dollar offers a buying opportunity, especially against the yen, the Swiss franc, the euro and the pound,” said Mankash Jain, head of FX and Investment Management, at London based hedge fund, Solo Capital, according to Reuters.

The dollar index, a measure on U.S. unit’s performance against a basket of six major traded currencies, fell 0.47% to 80.90.

The yen and Swiss franc jumped sharply higher against the dollar. As these currencies are regarded as highly liquid ones, investors tend to seek in safety in them in the times of uncertainty.

At last check, the euro was last up 0.70% to $1.3429. Against the yen, the dollar was down 0.32% to 97.27 yen.








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Post Written By: Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.

Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing.

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