Investing.com - The U.S. dollar traded lower against most of its major rivals during Monday’s Asian session despite the fact that tapering of the Federal Reserve’s USD85 billion-a-month in bond purchases is has not been put to bed.
In Asian trading Monday, EUR/USD rose 0.09% to 1.3536 after German Chancellor Angela Merkel’s Christian Democratic party took nearly 42% of the vote in Sunday’s national elections. Peer Steinbruek’s Social Democrats had 25.5% of the vote, according to projections unveiled on Sunday.
Forecasts had Merkel’s group with a one-seat majority in the lower house for only the second time since World War II after Konrad Adenauer in 1957, according to Bloomberg.
USD/JPY slipped 0.25% to 99.13. Last week, Bank of Japan Governor Haruhiko Kuroda said Japan’s economic recovery will be bolstered by employment gains and improving international economies. He added that BoJ would not consider it a success to simply lift inflation to 2 per cent, a target it adopted this year, but rather wanted to entrench expectations of sustained price rises, Reuters reported.
GBP/USD rose 0.13% to 1.6027. The dollar weakened across the board on Wednesday after the Federal Reserve said it wanted to see more evidence of a sustained economic recovery before it adjusted the scale of its bond buying program.
However, the tapering conversation is far from over. In fact, expectations are in place that the Fed could begin trimming its asset purchases as soon as next month. Many market observers expect some form of tapering to be seen by the end of this year at the very latest.
USD/CHF inched down 0.01% to 0.9108 while USD/CAD fell 0.10% to 1.0297.
Last Friday, St. Louis Fed President James Bullard said the decision not to taper in September was "close" and did not rule out a small reduction in the central bank's bond purchases in October. The Fed will hold its next monetary policy meeting on Oct. 29-30.
AUD/USD inched up 0.02% to 0.9400 while NZD/USD fell 0.06% to 0.8358. The U.S. Dollar Index dropped 0.07% to 80.48.
In Asian trading Monday, EUR/USD rose 0.09% to 1.3536 after German Chancellor Angela Merkel’s Christian Democratic party took nearly 42% of the vote in Sunday’s national elections. Peer Steinbruek’s Social Democrats had 25.5% of the vote, according to projections unveiled on Sunday.
Forecasts had Merkel’s group with a one-seat majority in the lower house for only the second time since World War II after Konrad Adenauer in 1957, according to Bloomberg.
USD/JPY slipped 0.25% to 99.13. Last week, Bank of Japan Governor Haruhiko Kuroda said Japan’s economic recovery will be bolstered by employment gains and improving international economies. He added that BoJ would not consider it a success to simply lift inflation to 2 per cent, a target it adopted this year, but rather wanted to entrench expectations of sustained price rises, Reuters reported.
GBP/USD rose 0.13% to 1.6027. The dollar weakened across the board on Wednesday after the Federal Reserve said it wanted to see more evidence of a sustained economic recovery before it adjusted the scale of its bond buying program.
However, the tapering conversation is far from over. In fact, expectations are in place that the Fed could begin trimming its asset purchases as soon as next month. Many market observers expect some form of tapering to be seen by the end of this year at the very latest.
USD/CHF inched down 0.01% to 0.9108 while USD/CAD fell 0.10% to 1.0297.
Last Friday, St. Louis Fed President James Bullard said the decision not to taper in September was "close" and did not rule out a small reduction in the central bank's bond purchases in October. The Fed will hold its next monetary policy meeting on Oct. 29-30.
AUD/USD inched up 0.02% to 0.9400 while NZD/USD fell 0.06% to 0.8358. The U.S. Dollar Index dropped 0.07% to 80.48.