On Monday the dollar index rose for a second day in a row ahead of Federal Reserve of St. Louis President James Bullard statement, expected later in the day. Speculations were fueled that FED will embark on a slow down of its easing program on signals that economy began to improve.
US dollar advanced against the Japanese yen, after its collapse to two-month low at 97.23 during Asian trade. The greenback received support after shreds of positive economic data came out last week. “I expect the dollar to be resilient because of lingering expectations that the Fed will taper monetary easing,” said Daisaku Ueno, a senior foreign-exchange and fixed-income strategist at Mitsubishi UFJ Morgan Stanley Securities Co., cited by Bloomberg. Fed policy makers led by Chairman Ben Bernanke are expected to cut Quantitative Easing program to 65 billion USD a month at the October 29-30th meeting of the Federal Open Market Committee, from the current level of 85 billion USD, in accordance with the median estimate of economists in a Bloomberg survey.
The dollar index, which tracks the performance of US dollar versus the currencies of six US trading partners rose by 0.2% to 81.85 at 8:34 a.m. in Tokyo. USD/JPY pair added 0.7% to 98.27, after on Friday (June 7th) it fell down to 94.99, the lowest value since April 4th. Dollar advanced by 0.1% against the euro, as EUR/USD was being traded at 1.3202 earlier today. The cross strengthened 0.2% on Friday.
Meanwhile, Australian dollar decreased by 0.7% against the greenback, with AUD/USD falling to 0.9431, while NZD/USD pair fell by 0.5% to 0.7854.
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