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FOREX-Dollar index edges higher ahead of FOMC minutes
July 5, 2017 / 3:31 PM / 4 months ago

FOREX-Dollar index edges higher ahead of FOMC minutes

    * Dollar fades against yen after hitting seven-week peak
    * North Korea's latest missile launch briefly lifts yen
    * Fed minutes seen sharpening view on balance sheet
reduction
    * Lower oil prices pressure commodity-linked currencies

 (Updates market action, changes dateline, previous LONDON)
    By Richard Leong
    NEW YORK, July 5 (Reuters) - The dollar inched up on
Wednesday against a basket of currencies as traders awaited the
release of the Federal Reserve's minutes on its June policy
meeting which may hold more clues on its plan to possibly reduce
its balance sheet later this year.
    The yen rose briefly on safe-haven demand after North Korea
said on Wednesday it conducted a test of a newly developed
intercontinental ballistic missile (ICBM) that can carry a large
nuclear warhead.
    A sharp pullback in oil prices bogged down the Canadian
dollar and other currencies of countries whose economies are
reliant on commodity exports. 
    "Traders are looking for more clarity on the Fed's strategy
for the rest of the year," said Minh Trang, senior currency
trader at Silicon Valley Bank in Santa Clara, California.
    The dollar index was up 0.18 percent at 96.388 after
touching a one-week high earlier on Wednesday.
    The euro was down 0.12 percent at $1.1329, retreating
further from its highest levels in over a year reached last
week.
    The greenback hit a seven-week high against the yen
at 113.68 yen before fading to 113.27 yen, little changed on the
day.
    The dollar slipped below 113 yen in overnight trading in the
wake of Pyongyang's announcement on its latest missile launch.
    U.S. financial markets were closed on Tuesday for the July
Fourth holiday. 
    In addition to more details on how the Fed would reduce bond
 reinvestments to shrink its $4.5 trillion balance sheet,
traders are awaiting hints on the timing on the next interest
rate increase even as inflation has softened in recent months.
    The Fed will release the record of its June 13-14 policy
meeting at 2 p.m. (1800 GMT).
    As U.S. price growth has weakened and remained below the
Fed's 2 percent inflation goal, some traders have piled on bets
for the dollar to fall.
    Bearish bets on the greenback rose in late June as the
European Central Bank and Bank of England hinted they might
consider scaling back monetary stimulus later this year.
    A 3 percent drop in oil prices hurt the Canadian
, Australian, New Zealand dollars and
other commodity-sensitive currencies.  
    The Canadian dollar fell 0.5 percent at C$1.3002 per dollar
after hitting C$1.2912 on Tuesday, which was its strongest
against the greenback since Sept. 9.
========================================================
    Currency bid prices at 11:17AM (1517 GMT)
 Description      RIC         Last           U.S. Close  Pct Change     YTD Pct     High Bid    Low Bid
                                              Previous                   Change                 
                                              Session                                           
 Euro/Dollar      EUR=        $1.1336        $1.1342     -0.05%         +7.83%      +1.1368     +1.1313
 Dollar/Yen       JPY=        113.2500       113.2600    -0.01%         -3.10%      +113.6800   +112.8300
 Euro/Yen         EURJPY=     128.37         128.48      -0.09%         +4.25%      +129.0700   +128.1700
 Dollar/Swiss     CHF=        0.9651         0.9653      -0.02%         -5.18%      +0.9687     +0.9628
 Sterling/Dollar  GBP=        1.2913         1.2916      -0.02%         +4.68%      +1.2948     +1.2894
 Dollar/Canadian  CAD=        1.2996         1.2935      +0.47%         -3.23%      +1.3014     +1.2930
 Australian/Doll  AUD=        0.7576         0.7600      -0.32%         +5.00%      +0.7632     +0.7572
 ar                                                                                             
 Euro/Swiss       EURCHF=     1.0941         1.0953      -0.11%         +2.09%      +1.0965     +1.0942
 Euro/Sterling    EURGBP=     0.8775         0.8777      -0.02%         +3.02%      +0.8809     +0.8761
 NZ               NZD=        0.7265         0.7288      -0.32%         +4.67%      +0.7296     +0.7256
 Dollar/Dollar                                                                                  
 Dollar/Norway    NOK=        8.3970         8.3531      +0.53%         -2.78%      +8.4147     +8.3320
 Euro/Norway      EURNOK=     9.5201         9.4784      +0.44%         +4.78%      +9.5273     +9.4676
 Dollar/Sweden    SEK=        8.4908         8.5252      -0.50%         -6.77%      +8.5301     +8.4904
 Euro/Sweden      EURSEK=     9.6236         9.6717      -0.50%         +0.46%      +9.6770     +9.6202
 
    
    
    

    
 (Additional reporting by Saikat Chatterjee in LONDON, Hideyuki
Sano in TOKYO; Editing by Toby Chopra and Meredith Mazzilli)
  
 
 

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