Money rate 4/6/2022 - Dollar rises before Fed releases minutes of last meeting

Money rate 4/6/2022 - Dollar rises before Fed releases minutes of last meeting

The dollar rose on Wednesday morning in Asia as investors awaited the minutes of the last meeting of the US Federal Reserve.

The Dollar Index that tracks the greenback against a basket of other currencies edged up 0.09% to 101.968 by 1:07 PM ET (5:07 AM GMT).

USD/JPY increased 0.11% to 126.96.

AUD/USD rose 0.15% to 0.7114 and NZD/USD gained 0.67% to 0.6507. The Reserve Bank of New Zealand raised interest rates from 1.5% to 2.0% as expected by The bank also offered a direction for tightening in the future, saying that a larger and earlier policy could reduce the risk of high and persistent inflation.

USD/CNY edged up 0.26% to 6.6708 and GBP/USD inched 0.05% to 1.2535.

The Euro fell 0.22% to $1.07105 but remained near Tuesday's high of $1.0748, levels not seen since April 25. Comments by the Central Bank President Europe Christine Lagarde said eurozone interest rates are likely to stay positive by the end of the third quarter, which has given the euro a boost.

Lagarde's comments implied that deposit rates rose by at least 50 basis points and sparked speculation of larger rallies this summer.

The yield on the 10-year Treasury note rose to 2.7631%, after falling to a nearly one-month low of 2.718% overnight.

Investors are monitoring the monetary policy outlook with fears of a potential recession caused by tight monetary policy. Minutes of the Fed's final meeting will be released later today, with investors awaiting further clues as to whether the tightening will continue.

However, Atlanta Fed President Raphael Bostic, one of the central bank's dovish policymakers, warned that a prolonged rate hike could create "significant economic distortions." and urged the Fed to tighten policy cautiously and avoid "reckless," in an essay published Tuesday.

"It's not clear if we're getting any closer to where the Fed wants to be, but it's clear that the drags to growth are becoming more apparent," said market economist Tapas Strickland.

"The Fed is of course still focused on inflation, but if inflation starts to moderate, the Bostic opens up the possibility that the Fed will pause."

In Asia-Pacific, Bank of Korea will make its rate decision on Thursday.

In crypto, bitcoin has dropped to around $30,000.

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