Greenback is in a holding pattern
During Friday’s Asia trade the evergreen buck stood flat against its major Japanese counterpart as well as the common currency because market participants simply stood away from taking strong positions. So they were in a wait-and-see mode focusing on the Fed’s next move.
The US dollar was worth ¥110.16 compared to Thursday’s outcome of ¥109.95 in New York. The major European currency traded $1.1205 compared to $1.1203 on Thursday. Then, the WSJ Dollar Index remained intact, trading at 87.55.
The US dollar has managed to gain traction during recent trade after this week’s issue of April’s Fed policy-meeting minutes, which powered hopes for a forthcoming rate hike. The minutes unveiled that Fed policy setters discussed the possibility of June’s rate hike if the US economy kept strengthening.
On Thursday, William Dudley, President of Federal Reserve Bank of New York told there was a really good chance that the US major bank’s next rate hike would take place this summer.