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Dollar bounces off 27-month low ahead of Fed minutes

Dollar bounces off 27-month low ahead of Fed minutes

The U.S. dollar recuperated its earlier losses when it fell to a fresh 27-month low, as investors eye the Federal Reserve meeting minutes due later in the day.

The dollar index, which tracks the movements of the green currency versus a basket of major currencies, rebounded from a low of 92.12, the lowest level since May 2018 to hover around 92.24.

Meanwhile, the dollar is attempting to lock its first daily gain in six sessions today, ahead of the Fed minutes that will provide some hints on FOMC members' opinion regarding economic recovery amid the undergoing corona crisis.

Last month, Fed policymakers held interest rates while reiterated their vow to maintain the central bank’s huge stimulus measures to endorse the pandemic-hit economy.

Today’s minutes may shed the light on comments concerning further action that could be undertaken in September, when the Fed announce its latest economic projections.

Also, the minutes may signal the implementation of an average inflation target and probably to push inflation above 2 percent for a while.

The dollar has recently been under selling pressure in the wake of the elevating U.S.-China tensions and the rise in coronavirus cases in the United States.

President Trump had postponed last weekend talks with China, as he said: “I don’t want to deal with them now.”

He also criticized China's handling of the corona pandemic by adding: “With what they did to this country and to the world, I don’t want to talk to China right now.

Currently, there are hopes that the U.S. Congress would soon reach consensus on a new stimulus package, as Democrats and Republicans are heading closer to bridge their differences.

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