Dollar Holds Ground; Optimistic Expectations from Fed’s October Meeting Minutes

Dollar Holds Ground; Optimistic Expectations from Fed’s October Meeting MinutesAlthough dollar dipped a little but still held ground at nearly a high of seven-months during the early Asian trade. The green back also got a lift, as some of the Fed hinted at a possible hike in the key interest rates in the coming month.

There was a slight drop in the dollar index of approximately 0.2 percent at 99.436. In a day, it earlier hit 99.853, closing at its highest in twelve years of 100.39, which was set in March.

The minutes of Fed's last meeting in October, revealed that the policymakers made a somewhat direct reference to a likely rate increase in December, which is a usually thing for the Federal Reserve.

In another instance, on Thursday the Bank of Japan will finish a two-day monetary policy meeting. It is expected that Japan's central bank will hold steady on its policies although despite the country went into a technical recession following contraction in the last two quarters.

BOJ Governor Haruhiko Kuroda, is expected to restate at a briefing after the meeting, that the labour markets are tightening and that is likely to lift the wages helping Japan recover from its soft patch which is just a temporary phase.

However, several economists worry that the soft patch is not as shallow as the officials say.

On Thursday, data released by the Ministry of Finance showed that, in October, the country's exports dropped 2.1 percent.