FOMC Policy Meeting Minutes Weakened Dollar - 23.8.2012

The US dollar fell under pressure yesterday evening and even dropped further against the majors in the morning today as minutes of the August FOMC meeting showed that many members of the Committee supported additional stimuli as the pace of recovery is not strong enough. In September the Committee will return to discussions of further monetary easing on the basis of new macroeconomic data. At the same time Chicago Fed President Charles Evans said in an interview in Beijing today that monetary accommodation should be taken around the world, including in China. Also today a preliminary gauge of China manufacturing showed economic activity decreased for the 10th straight month. The HSBC/Markit PMI dropped to 47.8 in August from 49.3 in July. The single currency rose against the dollar to 1.2571, the highest since July 4, while the British pound touched a 3-month high at 1.5911. The Aussie and the Loonie reversed earlier losses and the Japanese yen rocketed to a one-week high.