01 Jun

Dollar doing well as FOMC minutes revealed

The US dollar was performing well compared to other world currencies overnight, it has been reported.

The higher trading comes as minutes from a meeting of the country's Federal Open Market Committee (FOMC) earlier this month revealed that the US is under pressure from inflation.

Norihiro Takemura, forex dealer for the Sumitomo Trust and Banking,
said: "As the FOMC minutes have re-ignited expectations for additional rate increases in the US, the market will now be watching very carefully tomorrow's release of non-farm payroll data for May for any further clues on monetary policy direction."

The FOMC minutes outlined a rate increase of 50 basis points, which has not happened since 2000.

It is also reported that the dollar's good performance was also related to lower crude and gold prices.

At 0350 GMT, the dollar was trading at 112.65 against the yen, while euro stood at 1.2769 USD.