The world's reserve currency moderately rose on Friday against many of its major counterparts after the chief of the St. Louis Federal Reserve Bank said some tapering is possible in October, Bloomberg reports.
James Bullard also noted that the Fed's decision this past week to leave stimulus measures unchanged was a close call. Chairman Ben Bernanke said following Tuesday and Wednesday meetings that the body did not want to implement a sudden tightening of policy. He also noted that the Fed plans to continue monitoring economic data about the globe's largest economy.
"The main takeaway from Wednesday is that Fed tapering is delayed, not that it has been removed. At some point the Fed will move to taper and we will see U.S. yields move a bit higher and support the dollar," global currency strategist Sara Yates JP Morgan Private Bank in London told Reuters on Friday.
The greenback gained roughly 0.1 percent against the Japanese yen. Its performance against the common currency of the European Union was moderately changed.
The world's reserve currency pushed to its highest value in about seven days against the Japanese yen, according to Reuters.
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