The world's reserve currency lost value on Wednesday after China released economic data indicating its services industry is growing stronger, Bloomberg reports.
For the first time in six days, the Bloomberg Dollar Index fell. The metric measures the value of the dollar against 10 competing monetary units. Also impacting the value of the U.S. dollar was speculation about whether the U.S. Federal Reserve will decrease monetary stimulus.
"The Fed is likely to taper this month and that is going to keep the dollar underpinned," head of research Paul Bednarczyk with 4Cast told Reuters on Wednesday. "Tapering is going to be the first step towards policy tightening before other major central banks so people will start buying dollars."
The world's reserve currency dove about 0.2 percent on the dollar index after notching its highest value since July 16. The dollar's climb during the past five days were 1.1 percent.
The greenback was in demand on Wednesday after President Obama won over two opposition leaders regarding a military strike against Syria, according to Reuters. The Middle Eastern nation stands accused of deploying chemical weaponry against its own people on August 21.
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