Dollar Rebuilds Gains as FOMC Statement Leaves December in Play
- Traders turn focus to BOE, announcement of Fed chair nominee
- USD rallies versus majority of G-10 peers; EUR, GBP, JPY fall
The dollar rebuilt gains after the Federal Open Market Committee said it sees the economy expanding at a “solid” pace despite hurricane-related disruptions; officials left the policy rate unchanged in a widely telegraphed decision.
Traders took the upgraded assessment of the economy as a signal the central bank remains on track for a December hike. The Bloomberg Dollar Spot Index briefly dropped after the FOMC policy statement was released before quickly recovering; the index was on pace to end the day up 0.1 percent. The greenback reached its high early in the U.S. session after an ADP employment report estimated that businesses added 235,000 jobs in October versus forecasts for a gain of 200,000; the currency then retreated on a below-estimate ISM manufacturing index reading.