Dollar Gains Versus Major Peers on Fed Taper in Coming Months

The dollar rose against most major peers as Federal Reserve officials said they might reduce their $85 billion in monthly bond purchases “in coming months” as the economy improves, minutes of their last meeting show.

The euro dropped from a four-year high versus the yen as the European Central Bank is considering a negative deposit rate if more economic stimulus is needed, according to two people with knowledge of the debate. The yen strengthened as a panel said Japan’s government-run pension fund needs restructuring.

The Bloomberg U.S. Dollar Index, which monitors the greenback against 10 major peers, increased for the first time in four days, adding 0.4 percent to 1,019.07 yen at 5 p.m. in New York.

The euro declined 0.8 percent to 134.43 yen after earlier touching 135.95, the strongest level since October 2009. The shared currency fell 0.7 percent to $1.3439. The dollar slid 0.1 percent to 100.03 yen.

(Source: Bloomberg)