Federal Open Market Committee minutes create market uncertainties
April 13, 2005
The dollar had lost ground against the yen and the euro by midmorning on Wednesday in London trading after the release of the March minutes of the Federal Open Market Committee (FOMC) meeting.
Those minutes left open questions about the direction and speed of interest rate change.
More meaning was assigned to comments in the minutes that said it was not currently necessary to speed up “policy tightening” than to the fact that the FOMC had removed the phrase “measured pace” from its policy statements.
Not all analysts were convinced that this was a correct interpretation. However it was thought that the dollar could recover if March US retail sales figures, which were to be released later on Wednesday, were over the predicted 0.5 percent.
The dollar had lost most in relation to the yen and was ¥0.38 lower than it’s close in New York on Tuesday. The euro had gained about 0.1 cent and was trading at $1.2930 at midmorning in London.
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