US dollar slips as risk appetite improves

NEW YORK, Nov 25 — The US dollar weakened in late trading on Thursday as the Federal Reserve’s latest meeting minutes boosted risk sentiment, limiting the appeal of the greenback, reported Xinhua.

The dollar index, which measures the greenback against six major peers, fell 0.24 per cent to 105.8180.

In late New York trading, the euro increased to US$1.0417 from US$1.0403 in the previous session, and the British pound rose to US$1.2118 from US$1.2065 in the previous session.

The US dollar bought 138.46 Japanese yen, lower than 139.45 Japanese yen of the previous session.

The US dollar increased to 0.9427 Swiss francs from 0.9419 Swiss francs, and it was down to 1.3335 Canadian dollars from 1.3360 Canadian dollars. The US dollar fell to 10.3956 Swedish Kronor from 10.4586 Swedish Kronor.

The minutes from the Fed’s November meeting released Wednesday showed that most policymakers favoured a slower tightening pace soon.

While noting that inflation had still not shown significant signs of abating, “a substantial majority of participants judged that a slowing in the pace of increase would likely soon be appropriate,” said the minutes.

The suggestion reinforced expectations that the central bank will raise interest rates by 50 basis points at its next meeting in mid-December, rather than the 75 basis-point hike it delivered at each of its past four meetings.

NMT as reported by Bernama