The US dollar changed hands practically at more than a week peak against the majors. As a result, the greenback has remained on the rise that began at night trading. The forecasts of faster interest rate increase in the USA were fueled by the minutes of the January Federal Reserve meeting.
The minutes of the Federal Reserve meeting held on January 30-31 confirmed that officials of US Central bank were becoming more confident in the strength of US economy. As a result, their plans to lift interest rate in the near term (next month particularly) have received good backing.
"A majority of participants noted that a stronger outlook for economic growth raised the likelihood that further gradual policy firming would be appropriate," the minutes read.
The US Dollar index was at 90.11 this morning, having previously hit the record at 90.17 over a week.
The index gained 2% following a plunge to 3-year bottom last week (88.15).
The US dollar-to-yen exchange rate decreased to 107.45 (0.29%). The European currency vs the greenback was seen at 1.2276. For reference, the previous session recorded a 0.46% weakening of the euro.
Demand for the yen as safe haven soared since the expectations of faster interest rate revision affected demand for stocks and risk assets.
For reference, the Japanese currency traditionally improves during the period of the market instability. This is explained by high trade balance surplus in Japan and consequently more steady positions of the currency against those in the countries with trade balance deficit.