All quiet on the U.S. dollar front? Apparently so.
The Federal Reserve is confident about the dollar’s liquidity in global financial markets that it is trimming its currency swap agreements with several major central banks next month.
According to the European Central Bank (ECB), the Fed would cut the number of seven-day swap operations with its counterparts to one tender per week, down from three per week. This is scheduled to begin on September 1.
It was reported, however, that the U.S. central bank would maintain its schedule for 84-day tenders with the ECB, Bank of England (BoE), the Bank of Japan (BoJ), and the Swiss National Bank (SNB) at one a week.
At the time of this writing, the U.S. Dollar Index tumbled 0.08% to 92.81, from an opening of 92.96, at 16:35 GMT on Thursday. The index, which gauges the greenback against a basket of currencies, had topped 93.00 in intraday trading. It is poised for a weekly loss of about 0.5%, bringing its year-to-date decline to 3.7%
Leave a Comment