Investing.com - The dollar rallied against the other major currencies on Thursday as the minutes of the Federal Reserve’s latest meeting were seen as supporting the view that the central bank will soon start to phase out stimulus measures.
During European late morning trade, the dollar rose to one-week highs against the euro, with EUR/USD shedding 0.39% to trade at 1.3302.
The dollar strengthened after the minutes of the Fed’s July meeting showed that officials were "broadly comfortable" with plans to start unwinding the bank’s USD85 billion-a-month bond buying program.
However, officials remain divided over the timing of possible reduction, with almost all committee members agreeing that a change in the asset purchase program was not yet appropriate.
The minutes described recent U.S. economic data as “mixed”, indicating that plans to taper could be pushed back if the economy was to weaken.
The euro briefly touched session highs earlier after data showed that manufacturing activity in the euro zone expanded at the fastest pace in 26 months in August.
The flash euro zone manufacturing purchasing managers’ index rose to 51.3 from a final reading of 50.3 in July. Analysts had expected the index to inch up to 50.8.
Meanwhile, the flash euro zone services PMI rose to a 24-month high of 51.0 from 49.8 in July, better than expectations for a reading of 50.2.
Germany’s manufacturing PMI rose to a 25 month high of 52.0, while the country’s services PMI rose to a six-month high of 52.4.
This offset data showing that the French manufacturing PMI remained unchanged at 49.7 in August, while the French services PMI declined to a two-month low of 47.7.
The dollar rose to almost three-week highs against the yen, with USD/JPY jumping 1.07% to 98.73.
The yen extended losses against the dollar after the upbeat euro zone data bolstered the outlook for the economic recovery in the region, dampening safe haven demand.
The dollar also climbed to session highs against the pound and the Swiss franc, with GBP/USD down 0.56% to 1.5573 and USD/CHF climbing 0.63% to trade at 0.9281.
Elsewhere, the greenback was broadly higher against its Australian, New Zealand and Canadian counterparts, with AUD/USD up 0.17% to 0.8984, NZD/USD losing 0.47% hit 0.7808 and USD/CAD advancing 0.21% to 1.0493.
The growth linked Australian dollar hit session highs earlier Thursday after economic data out of China eased concerns over a slowdown in the world’s second largest economy.
The preliminary reading of China’s HSBC manufacturing PMI rose to a four-month high of 50.1 in August, up from 47.7 in July. Economists had forecast a reading of 48.3.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.44% to 81.71.
Investors were looking ahead to U.S. data on initial jobless claims later in the trading day.
During European late morning trade, the dollar rose to one-week highs against the euro, with EUR/USD shedding 0.39% to trade at 1.3302.
The dollar strengthened after the minutes of the Fed’s July meeting showed that officials were "broadly comfortable" with plans to start unwinding the bank’s USD85 billion-a-month bond buying program.
However, officials remain divided over the timing of possible reduction, with almost all committee members agreeing that a change in the asset purchase program was not yet appropriate.
The minutes described recent U.S. economic data as “mixed”, indicating that plans to taper could be pushed back if the economy was to weaken.
The euro briefly touched session highs earlier after data showed that manufacturing activity in the euro zone expanded at the fastest pace in 26 months in August.
The flash euro zone manufacturing purchasing managers’ index rose to 51.3 from a final reading of 50.3 in July. Analysts had expected the index to inch up to 50.8.
Meanwhile, the flash euro zone services PMI rose to a 24-month high of 51.0 from 49.8 in July, better than expectations for a reading of 50.2.
Germany’s manufacturing PMI rose to a 25 month high of 52.0, while the country’s services PMI rose to a six-month high of 52.4.
This offset data showing that the French manufacturing PMI remained unchanged at 49.7 in August, while the French services PMI declined to a two-month low of 47.7.
The dollar rose to almost three-week highs against the yen, with USD/JPY jumping 1.07% to 98.73.
The yen extended losses against the dollar after the upbeat euro zone data bolstered the outlook for the economic recovery in the region, dampening safe haven demand.
The dollar also climbed to session highs against the pound and the Swiss franc, with GBP/USD down 0.56% to 1.5573 and USD/CHF climbing 0.63% to trade at 0.9281.
Elsewhere, the greenback was broadly higher against its Australian, New Zealand and Canadian counterparts, with AUD/USD up 0.17% to 0.8984, NZD/USD losing 0.47% hit 0.7808 and USD/CAD advancing 0.21% to 1.0493.
The growth linked Australian dollar hit session highs earlier Thursday after economic data out of China eased concerns over a slowdown in the world’s second largest economy.
The preliminary reading of China’s HSBC manufacturing PMI rose to a four-month high of 50.1 in August, up from 47.7 in July. Economists had forecast a reading of 48.3.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.44% to 81.71.
Investors were looking ahead to U.S. data on initial jobless claims later in the trading day.