Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Forex - Dollar eases off 13-month lows with Fed ahead

Published 26/07/2017, 08:39
Updated 26/07/2017, 08:45
© Reuters.  Dollar eases off 13-month lows with Fed ahead

© Reuters. Dollar eases off 13-month lows with Fed ahead

Investing.com - The U.S. dollar pulled back from 13-month lows against a basket of the other major currencies on Wednesday as investors awaited the outcome of the Federal Reserve’s latest policy meeting later in the day.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, edged up to 93.99 by 03.39 a.m. ET (07.39 a.m. GMT).

The index touched a low of 93.46 on Tuesday, its weakest since June 2016. The index has fallen around 2% so far this month and is down around 8% for the year to date.

The Fed is widely expected to keep policy on hold, but investors are hoping that the bank’s rate statement will reveal more about plans for monetary tightening this year.

The sluggish inflation outlook has raised doubts over whether the Fed will be able to stick to plans for a third rate hike this year.

Investors were also watching political developments in Washington after the U.S. Senate narrowly agreed to open debate on a bill to overhaul the Affordable Care Act.

But questions remained about whether Republicans would be able to gather enough support for any of the proposed approaches to repeal and replace Obamacare.

Declining expectations that the Trump administration will be able to push through items on its legislative agenda such as overhauling the tax code and implementing fiscal stimulus have fed into recent dollar weakness.

The dollar was steady against the yen, with USD/JPY at 111.85, holding gains after ending Tuesday’s session up 0.81%.

The euro was little changed, with EUR/USD at 1.1642. On Tuesday the euro touched a high of 1.1711, the most since August 2015, propelled higher by an upbeat report on German business sentiment.

The Australian dollar was lower, with AUD/USD down 0.49% to 7896 after soft domestic inflation data cooled expectations for an interest rate hike this year.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.