The world's reserve currency marched toward its highest value in almost two weeks on Thursday against the common currency of the European Union in the aftermath of the U.S. Federal Reserve deciding on Wednesday that it will taper its stimulus program, according to Bloomberg.
After policy makers with the Fed adjourned two days of meetings on Wednesday afternoon, the body said it will slash monthly bond purchases by $10 billion from $85 billion to $75 billion. Whether the officials would reduce policy was the topic of pitched scrutiny.
"The market is still trying to digest the implications of a reduction in asset purchases, combined with looser forward guidance," states a Thursday email authored by emerging-market strategist Abbas Ameli-Renani with Royal Bank of Scotland Group Plc. in London, according to Bloomberg. "The broader picture remains strategically unchanged and the market can now move on."
The U.S. dollar climbed roughly 0.2 percent against the 17-nation monetary unit after pushing to its top level since December 6.
Bond yields are forecast to climb as a result of the first slash to the effort to spur the globe's largest economy, according to Reuters.
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