NEW YORK: The dollar edged higher on Tuesday against a basket of peer currencies following the US Independence Day long weekend as traders positioned themselves ahead of the release of the minutes from the US Federal Reserve’s pivotal June meeting. Market participants will be looking for clues as to when the Fed will begin to dial down its pandemic-induced bond-buying spree as the economic recovery heats up, when the minutes of the June meeting are published on Wednesday.
At 10:45 a.m. Eastern time, the dollar index was up 0.261% at 92.488. The move higher comes after a mixed US jobs report at the end of last week sent the greenback tumbling from a three-month high. The data dented the euro which was down 0.33% at $1.1827 against the greenback. It fell to an early April low of $1.1807 last week.
Sterling was down 0.29% against the dollar at $1.3807 after having hit a one-week high of $1.3888, with markets looking forward to England becoming the first major country to formally start living with the coronavirus by dropping Covid-related curbs in two weeks’ time. The New Zealand dollar eased 0.34% to $0.7008, erasing gains made earlier in the day as traders wagered a rate hike could come as early as November following a strikingly strong survey of business conditions. The Aussie slid 0.16% to $0.75125.