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Dollar Solidly Poised near 3Month High

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TOKYO Reuters The dollar traded near its highest in three months versus major peers on Thursday after minutes of the Federal Reserves June policy meeting confirmed the worlds biggest central bank is moving toward tapering its asset purchases as soon as this year.

The dollar index, which measures the greenback against six rivals, edged up to 92.759 after touching 92.844 overnight for the first time since April 5.

Fed officials said substantial further progress on economic recovery was generally seen as not having yet been met, although participants expected progress to continue and agreed they must be ready to act if inflation or other risks materialize, according to the minutes of the Federal Open Market Committee FOMCs June policy meeting released Wednesday.

Various participants at the session still felt conditions for curbing the bondbuying that is supplying markets with cash would be met somewhat earlier than they had anticipated, while others saw a less clear signal from incoming data, the minutes showed.

Economists polled by Reuters expect the Fed to announce a strategy for tapering its asset purchases in August or September. While most predict the first cut to its bondbuying program beginning early next year, about a third of respondents forecast it will happen in the final quarter of this year.

The FOMC remains one of the more hawkish central banks under our coverage, and will begin to discuss a taper at the policy meeting at the end of this month,…

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