US Dollar Extends Rebound Ahead of FOMC Minutes

The US dollar extended its bounce after last week’s sell-off, rising today against most of its major rivals, though not the Great Britain pound.

With no economic releases in the United States today, market analysts had to look elsewhere for explanation of the dollar’s rally. Many of them suggested that it was a safe haven buying as rising US Treasury yields after the Tuesday’s auction were threatening the stock market. Indeed, some of the US stock indices were trading lower in the American trading session, including the Dow Jones Industrial Average and the S&P 500 Index.

The Federal Open Market Committee will release minutes of its latest policy meeting at 19:00 GMT tomorrow. Market participants do not expect major revelations but will still watch the notes closely.

The Bloomberg Dollar Spot Index rose 0.65% today.

EUR/USD dropped from 1.2406 to 1.2336 as of 18:54 GMT today. USD/JPY gained from 106.57 to 107.28. Meanwhile, GBP/USD near the opening level of 1.3996 after falling to the low of 1.3937 intraday.

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