Forex: US dollar on fresh five month high after FOMC minutes announcement

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The USD rose for a short period to a fresh five month high against the Yen and also made gains against the Euro following the announcement of the minutes from the last Federal Reserve meeting. The minutes demonstrated that some of the Federal officials were in fact in favor of the United Stated central bank imposing more tight conditions before the end of the year. Following this news announcement the dollar raised to 84.80 against the yen its highest level since September of 24th. Similarly the single currency fell to 1.4210 from 1.4225 against the dollar.

The Federal Open Market Committee minutes provide information regarding what was discussed in FOMC meetings. As this committee discusses economic and financial conditions the announcements of minutes are a clear indication to the future US interest rate policy and therefore hawkish news are usually associated with hawkish currency behavior.