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US Dollar Sharply Edges Up Against Majors After FOMC Meeting Minutes

4/3/2012 3:04 PM ET

The US currency spiked up further against major opponents after the releasing of Federal Reserve's March meeting minutes at about 2:00 pm ET Tuesday.

According the minutes of the central bank's most recent policy making meeting, A divided Federal Reserve debated the outlook for the United States economy, but refrained from much talk about a third round of quantitative easing.

At that meeting, the Fed held interest rates at effectively zero and reiterated their conditional pledge to keep rates low through late 2014.

Most participants saw the U.S. economy expanding moderately despite the "temporary" effects of higher gasoline prices.

The Fed expects energy prices to level out in the second half of this year, resulting in subdued inflation in 2012 and 2013.

In the economic projection prepared for the March FOMC meeting, the staff slightly raised its near-term forecast for real GDP growth, but predicted that unemployment was expected to remain elevated through 2013.

Extending its morning session's gain, the greenback advanced further in afternoon deals and as of now trading near fresh multi-day highs of 0.9106 against the franc, 1.5900 versus the pound and 1.3226 against the euro, which may be compared to Monday's close of 0.9040, 1.6026 and 1.3321, respectively.

Against the Australian and New Zealand dollars, the greenback traded further higher at about 2:00 pm ET and presently trading at new multi-month high of 1.0304 and fresh multi-day high of 0.8170, respectively.

The US currency also edged up against its Japanese counterpart in today's afternoon trading. Currently, the dollar-yen pair is trading near 83.00 from previous session's low of 81.97.

by RTT Staff Writer

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