Dollar Retreats Against Euro
The greenback was edging lower against the euro Wednesday as thoughts that the Federal Reserve would leave the cost of borrowing unchanged waned.
The euro was trading for $1.4153, up marginally from $1.4111 late Tuesday. The dollar was selling for 117.3 Japanese yen, little changed from the prior session. British pounds were buying $2.0429, up from $2.0381 previously.
"There was some speculation Tuesday that maybe the Fed won't cut interest rates again soon, but that seems to be fading," says Ezechiel Copic, a currency analyst at IDEAglobal in New York. "The trend for the dollar is still lower and whenever we do get a pullback people see it as an opportunity to further short the dollar."
Many traders interpreted the minutes from the Fed's September policy meeting, which were released this week, as suggesting that the central bank was becoming less hawkish on rates and not as concerned about inflation. Should the Fed actually cut again, after a 50-basis-point reduction last month, the dollar would become less attractive to investors.In other currencies, the U.S. dollar was buying 98.3 Canadian cents unchanged from the prior session. The PowerShares DB G10 Currency Harvest (DBV), which tracks the world's major currencies, was up 0.1% in recent action. The CurrencyShares Euro Trust (FXE) and the CurrencyShares British Pound Sterling Trust (FXB) each rose 0.3%. At the same time, the CurrencyShares Japanese Yen Trust (FXY) and the CurrencyShares Canadian Dollar Trust (FXC) were down 0.1%.
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