US Dollar Gains Strength After FOMC Minutes

The euro-dollar trade is below $1.22 this morning, its lowest level in more than two years. Versus British sterling, the dollar is nearly 0.4% stronger. The dollar is weakening against the yen however, down nearly -0.7%, after the Bank of Japan also chose not to add further monetary stimulus to the country’s economy. Both the dollar and the yen are viewed as havens in the current environment.

The dollar index against a basket of currencies, including the euro, is up 0.23% this morning at 83.762, after rising to nearly 84 earlier.

Bond auctions in Spain and Italy scheduled for tomorrow have also weighed on the euro as yields on these countries’ sovereign debt are once again rising after falling earlier this week.

Paul Ausick