Dollar Drops as Fed Cites Currency as Risk to Its Inflation Goal
- Minutes show a `close call' in December interest-rate increase
- Yen at 4-month high as North Korea test adds to China woes
FOMC: Almost All Fed Officials Agreed on Liftoff
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The dollar fell after minutes from the U.S. Federal Reserve’s December meeting cited the strength of the greenback as a risk to the central bank’s objective of raising inflation toward its 2 percent goal.
The U.S. currency weakened against the euro and the yen after the Federal Open Market Committee minutes showed the central bank raised interest rates for the first time in almost a decade on a “close call” for some policy makers. The yen climbed to a four-month high against the dollar on concern China’s currency weakness reflects a slowing economy and as North Korea’s claim that it successfully tested its first hydrogen bomb added to demand for the safest assets.