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Dollar up ahead of Fed minutes

By AFP - Feb 22,2018 - Last updated at Feb 22,2018

Euro, Hong Kong dollar, US dollar, Japanese yen, pound and Chinese 100 yuan banknotes are seen in this photo illustration, on January 21, 2016 (Reuters file photo)

LONDON — The dollar continued its discreet recovery on Wednesday, lifted by expectations that the American central bank is shifting towards tightening monetary policy quickly, dealers said.

All eyes were on the publication of minutes, which was scheduled for later on Wednesday, of the latest Federal Reserve (Fed) meeting which Fed watchers will dissect in their search for insights into the central bank's thinking.

All things being equal, higher interest rates bolster the dollar as holding the currency becomes more attractive.

Barring any surprises in the minutes, "the greenback could be on the verge of a more significant comeback," predicted Fawad Razaqzada, an analyst at Forex.com.

The dollar stood comfortably firm against the euro and the yen as well as against the pound sterling which came under pressure after Britain reported rising unemployment.

The weaker pound, in turn, boosted London stocks, with the FTSE outperforming its European peers.

Paris posted small gains at the close, but Frankfurt fell "after a string of disappointing" eurozone manufacturing numbers, noted Connor Campbell, financial analyst at Spreadex trading group.

The share price of mining giant Glencore and Lloyds Banking Group enjoyed solid gains following well-received earnings updates.

Wall Street was firmer approaching midday in New York.

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