The U.S. dollar was stronger on Thursday and Asian stock markets were broadly higher after a release of the minutes from the Federal Reserve’s January meeting yesterday showed that the central bank may be willing to introduce another interest rate hike this year but that it would keep rates stable for now. The Fed hinted that it will begin to map out a plan to stop releasing $4 trillion in bonds and other assets, though an exact timeline was not provided. The minutes were generally in-line with expectations, showing a strong U.S. labor market and a stable economy, which could support an interest rate hike.
The dollar index was up 0.13 percent to 96.58 .DXY as of 2:09 p.m. HK/SIN. The dollar eased against the yen after trading up against the safe-haven currency for the past few sessions. It declined 0.12 percent to 110.72. The greenback gained against the pound, trading at $1.3033. It was also up against the euro, to $1.133, as well as the Canadian and Australian dollars.
Also supporting the dollar was continued optimism that a trade deal would be met between the U.S. and China. According to reports by CNBC, negotiators are drafting six memorandums of understanding on the primary issues and creating a list of 10 commodities and goods that China will purchase from the U.S. These drafts are the closest that the two trade behemoths have come to an agreement in months and analysts are hopeful that an end to the trade war is in sight. U.S. WTI was up 0.37 percent in the early afternoon in Asia, to $57.37 per barrel. Brent crude futures were up 0.13 percent to $67.17.
Asian stock markets were also primarily in positive territory. The Nikkei 225 was up 0.27 percent, the Shanghai Composite was up 0.20 percent, and Hong Kong’s Hang Seng Index was up 0.22 percent. Only South Korea’s Kospi and China’s Shenzhen Composite were modestly lower, both trading down around 0.05 percent.