Dollar Firmer After Fed. Beige Book
July 23, 2008
The U.S Fed Beige Book highlighted that economic activity slowed through mid July as input price pressures were increasing across the country. As input prices continued to rally, manufacturers noted that they plan to pass through the increase costs due to their inability to continue absorb the price pressure. According to the report the Fed still faces the dichotomy of rising inflation and a slowing economy, however, their bias now firmly seems skewed towards curbing inflationary pressures. As such the U.S. dollar saw mild gains against a basket of currencies after the release.