The US Dollar Index is holding out in the 80\/81 range, near 11 week highs and traders are once again left guessing if the US Federal Reserve are considering tapering their current stimulus program of $85 billion US dollars per month. Probably not we say…<\/p>\n
Latest US Dollar Index Rates<\/strong> The Taper Effect…<\/strong> The spectre of cuts in the Fed’s bond buying continued to cast a shadow over emerging market shares and currencies. They were among the hardest-hit when Fed Chairman Ben Bernanke first floated the prospect of “tapering” back in May.<\/p>\n When the Fed unexpectedly decided not to \u201ctaper\u201d in September, the markets were stunned and gyrated wildly. Our estimates are that if any tapering is going to happen, then it will be minimal.<\/p>\n Currently, the consensus estimate is that the Fed will begin to reduce the size of its QE program at some point in 2014, most likely near the end of the first quarter.<\/p>\n<\/p>\n
\nThe ICE US Dollar Index, which tracks the US dollar against six major world currencies was at 80.628, 11:26 GMT this morning on the ICE Futures Exchange. On currency markets the greenback remained generally lower against the Japanese yen and a basket of currencies but as data pushed benchmark US Treasury yields back above 2.8 percent, upwards pressure was starting to be felt.<\/p>\n
\nPolls of analysts and traders still point firmly to the US central bank holding fire until March 2014 on possible tapering of the US stimulus but some stronger data has reheated speculation it could move earlier to taper.<\/p>\n