The dollar was modestly lower in early Asian trade after the Federal Open Market Committee, the Federal Reserve’s policymaking arm, kept interest rates stable between 1 percent and 1.25 percent. At the end of the Fed’s two-day policy meeting, the central bank’s sentiment was largely optimistic, increasing analyst opinions that an interest rate hike will be forthcoming in December.
The dollar was trading down 0.36 percent against the yen to 113.73 as of 9:46 a.m. HK/SIN after trading above 114 at the end of the New York trading session. The greenback was also down against the euro, trading at $1.165. Also weighing on the dollar was the delay of the highly anticipated Republican tax bill which could signal discord within the U.S. government.
Later on Thursday U.S. President Donald Trump is expected to announce his candidate for Federal Reserve Chair for when Janet Yellen’s term ends in February 2018. Trump is expected to nominate current Fed Governor Jerome Powell who is somewhat less hawkish than the other candidates.
Oil Prices Remain Stable
Oil prices were higher early on Thursday after reports showed that U.S. commercial crude oil inventories declined even as output increased. According to reports from the Energy Administration on Wednesday, U.S. commercial crude eased by 2.4 million barrels last week despite an increase in production of 46,000 barrels per day. Brent crude futures were up 0.21 percent to $60.62 per barrel while U.S. WTI futures were up 0.07 percent to $54.34 per barrel.
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