U.S. Dollar Falls to Lowest Level in a Month
November 22 2017 - 6:17PM
Dow Jones News
By Ira Iosebashvili and Daniel Kruger
The dollar fell to its lowest level in a month Wednesday, after
minutes from the Federal Reserve's latest meeting revealed that
some officials believe weak inflation may persist longer then
expected.
The Wall Street Journal Dollar Index, which tracks the U.S.
currency against a basket of 16 others, was recently down 0.8% at
86.60, its lowest level since October 19.
Some Fed officials think inflation could stay below their 2%
annual target for longer than many expected, raising questions
about the pace of rate increases next year, minutes from the
central bank's October meeting showed. Expectations that borrowing
costs will rise slowly tend to hurt the dollar, as higher rates
make the currency more attractive to yield-seeking investors.
While most investors believe the Federal Reserve will raise
rates in December, many are still trying to gauge how aggressively
the central bank will tighten monetary policy next year.
Earlier in the session, the dollar fell after Commerce
Department data showed that durable goods orders slipped by 1.2% in
October from the previous month. Economists surveyed by The Wall
Street Journal had expected a 0.2% increase for orders last
month.
The dollar is down nearly 7% this year. Signs that Republican
lawmakers are on the way to successfully pushing through their tax
overhaul could boost the currency, some market participants
believe.
"The Republicans are closer to passing a tax deal than most
commentary suggests," said Steven Englander, head of research and
strategy at Rafiki Capital, in a note to clients. "This raises the
odds of a year-end (dollar) rally, but I would be cautious about
a...carryover into 2018."
Write to Ira Iosebashvili at ira.iosebashvili@wsj.com
(END) Dow Jones Newswires
November 22, 2017 18:02 ET (23:02 GMT)
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