The dollar strengthened ahead of the Federal Reserve’s meeting minutes yesterday and has held onto its gains.
The minutes from its June meeting indicated that the central bank is moving towards tapering monetary policy. They confirmed that policy makers hinted at hiking interest rates twice in 2023 and signalled that the first hike could come as early as 2022.
However, the meeting also reiterated the Fed’s view that high inflation is transitory and acknowledged that the economy had not yet met the “substantial further progress” requirement to start tightening monetary policy.
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