Dollar extended gains against the euro

[pioneer]

The dollar extended gains against the euro and the sterling pound on Wednesday after latest Fed minutes and strong economic reports boosted the greenback.

According to the latest minutes from the Federal Open Market Committee, some policymakers considered a sooner start of selling assets on the Fed's books and increasing overnight loans interest rates.

The Fed expected the economy to grow between 2.8 percent to 3.5 percent this year. Meanwhile, a growth of 3.4 percent to 4.5 percent is expected for next year and 2012.

The central bank also forecast that unemployment will stay high in the next two years, though it expects the jobless rates to fall next year.

While the document suggested different opinions among policymakers about when and how to withdraw liquidity, it offered more clarity to investors that boosted the dollar.

In other economic news, both construction of new homes and apartments and industrial production put on more-than-expected gains in January. - PNA