Sunday, 15 December 2013 - 8:36
Dollar gains for 2nd day on chance of a Fed taper
The dollar rose for a second straight session against the euro, as investors began pricing in the possibility that the US Federal Reserve could announce a small reduction in its massive stimulus at next week’s meeting.
While market participants in general expect the Fed to pare back its stimulus no later than March, a growing number expect that a reduction in the Fed’s asset purchases may be announced.
The bond market and, increasingly, the dollar, are beginning to price in a higher risk of a modest move by the Fed next week.