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Forex - Dollar down vs. rivals ahead of Fed rates decision

Published 03/16/2010, 11:02 AM
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Investing.com – The U.S. dollar was down against most other major currencies on Tuesday, as investors awaited a key decision by the U.S. Federal Reserve on interest rates.

The dollar sank against the euro, with EUR/USD jumping 0.6% to hit 1.3758 after the ZEW research institute released better-than-expected data on German economic sentiment.

Meanwhile, the greenback was also down against the pound and yen, with GBP/USD shooting up 0.8% to hit 1.5177 and USD/JPY shedding 0.12% to reach 90.42.

The greenback further slumped against the Swiss franc, with USD/CHF losing 0.62% to hit 1.0552, reportedly amid speculation that Switzerland's central bank was relaxing resistance to the Swissy's gains as the economic recovery gains pace.
 
In addition, the U.S. dollar fell against its Australian, Canadian and Kiwi counterparts: AUD/USD rose 0.02% to hit 0.9148, USD/CAD dropped 0.4% to hit 1.0152 and NZD/USD soared 0.91% to reach 0.7078.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.52%.

Later in the day, the U.S. Federal Reserve's Federal Open Market Committee was due to hold a policy-setting meeting, at which it was expected to reiterate its vow to keep interest rates very low for an "extended period."

Also Tuesday, U.S. Census Bureau data showed that there was a smaller-than-expected decline in the number of building permits issued and housing starts in the United States during February.

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