The dollar gained against most of its major peers before the Federal Reserve releases minutes of its last meeting as investors weighed the timing of the first interest-rate increase since 2006. The greenback gained 0.3% to $1.2633 per euro after touching $1.2501 on October 3, the strongest since August 2012. It climbed 0.3% to 108.39 yen from yesterday, after falling 1.6% in the past two sessions. The yen was little changed at 136.94 per euro from yesterday, when it touched 136.56, the strongest since September 8.
The Fed, which meets October 28-29, is on track to end a program of stimulatory bond purchases this month. Futures’ trading shows a 45% likelihood that the U.S. central bank will raise rates to 0.5% or higher by the end of July. The target rate has been maintained in a range of zero to 0.25% since 2008 to support the economy. The U.S. economy is seen expanding 3.1%, compared with a 3% pace forecast in July, the IMF said.
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