Thursday, 12 July 2012 02:21
NEW YORK: The dollar gained on W ednesday, pushing the euro to a fresh two-year low after minutes of last month's Federal Reserve meeting showed additional asset-buying by the Fed was not imminent and likely to occur only if US economic conditions worsened.
The report showed a few officials on the policy-setting Federal Open Market Committee believed further stimulus to the economy was justified, but a majority was not yet convinced.
"On balance, the minutes do not on the surface suggest a sizable body of support for further immediate action, although it should be borne in mind that the comments were made prior to recent data disappointments," said Peter Buchanan, economist at CIBC World Markets in Toronto.
"We doubt that the statement contains enough meat on the easing side to satisfy observers who were hoping for more signs of a willingness to launch another round of unsterilized quantitative easing on any signs of ...