The US Dollar Index opens the week firm over 83 following possible US Fed plans for winding down its stimulus program of buying $85 billion in bonds each month, sending the dollar higher and taking the edge off oil and gold prices. Latest Dollar Index Rates The ICE US Dollar Index, which tracks the greenback against a basket of six major world currencies including the euro and sterling was at 83.280, 07:07 GMT this morning on the ICE Futures Exchange, up from 83.132 last Friday. The 84 level will be the next resistance level to break in order for steeper gains to become possible. Fed Stimulus Program Federal Reserve officials have apparently mapped out a strategy for winding down an unprecedented $85 billion a month bond-buying program meant to spur the economy in an effort to preserve flexibility and manage unpredictable market expectations. Officials say they plan to reduce the amount of bonds they buy in careful and potentially halting steps, varying their purchases as their confidence about the job market and inflation evolves. The timing on when to start is still being debated. Bringing the Fed’s bond-buying program to an end would make the US dollar more attractive in terms of yield, analysts have said. Dollar v Oil US WTI Light oil for June delivery was down 83 cents to $95.21 per barrel at midday Bangkok time in electronic trading on the New York Mercantile Exchange. Meanwhile, ICE Brent crude oil fell 67 cents to $103.24 a barrel on the ICE Futures Exchange. Oil, gold prices and the dollar may react later Monday to the US Commerce Department’s report on retail sales for April, as the report could give signs about the outlook for oil demand.

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