Dollar Climbs With Stocks After Fed Minutes; Pound Snaps Selloff
- Several officials said rate hike needed “relatively soon”
- Nikkei futures signal rebound with yen near six-week low
FOMC Minutes Reveal a Much More Divided Fed
Minutes of the Federal Reserve’s last meeting supported the dollar, while also boosting equities as the record indicated policy makers may increase interest rates soon but maintain a gradual approach to further tightening. The pound rallied.
The Bloomberg Dollar Spot Index climbed to a seven-month high after the minutes showed several officials said a rate hike was needed “relatively soon.” The greenback advanced to its strongest level since the start of September versus the yen. The S&P 500 Index rose from a one-month low, while 10-year Treasuries capped a second day of declines. Sterling gained for the first time in five days after U.K. Prime Minister Theresa May accepted that Parliament should be allowed a say on her Brexit plan. Oil fell a second day.