Dollar Index Moves Higher, Fed Meeting on Tap
Investing.com - The U.S. dollar moved higher against other major currencies on Tuesday, as investors awaited the Federal Reserve's monthly policy meeting due to begin later in the day.
The Fed is widely expected to raise rates by a quarter point at the conclusion of its two-day policy meeting on Wednesday, but investors will mostly be focusing on any indications as to the pace of monetary policy tightening for the remainder of the year.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.19% at 89.64 by 06:15 a.m. ET (10:15 GMT).
The euro was lower, with EUR/USD down 0.26% at 1.2309, while GBP/USD held steady at 1.4023.
The euro had strengthened after Reuters reported on Monday that European Central Bank policymakers are shifting the focus of their debates from bond purchases to the future path of interest rates.
Meanwhile, demand for sterling was still underpinned by news the UK and the European Union reached an agreement on a 21-month post-Brexit transition deal.
The yen was weaker, with USD/JPY up 0.27% at 106.39, while USD/CHF added 0.18% to 0.9526.
Elsewhere, the Australian and New Zealand dollars were lower, with AUD/USD down 0.27% at 0.7696 and with NZD/USD declining 0.44% to 0.7209.
Meanwhile, USD/CAD was almost unchanged at 1.3078.
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