Dollar Rises as Fed Plans to End Stimulus Diverge From ECB, BOJ

The dollar rose for a second day on speculation the Federal Reserve will increase interest rates sooner than Japanese and Euro-area peers even as U.S. policy makers said stimulus is still required to boost the economy.

Fed officials discussed the need to improve guidance on the path of interest rates and heard a staff presentation on tools to control short-term borrowing costs once policy makers decide to raise them above zero, according to minutes of their April 29-30 meeting released in Washington. The greenback also gained as Treasury yields increased from almost six-month lows. The pound rallied as April retail sales jumped more than economists forecast. The yen reached a three-month high earlier after the Bank of Japan refrained from expanding stimulus.