Investing.com - The dollar held steady against the other major currencies on Wednesday, shrugging off the release of disappointing U.S. housing sector data, as markets eyed the Federal Reserve’s much anticipated policy decision later in the day.
During European afternoon trade, the dollar was lower against the yen, with USD/JPY down 0.20% to 99.92.
Official data showed that U.S. building permits fell by 3.8% to a seasonally adjusted annual rate of 918,000 units in August, from 954,000 the previous month. Analysts had expected building permits to fall by 0.4% to 950,000 units last month.
The report also showed that U.S. housing starts rose 0.9% to a seasonally adjusted rate of 891,000 units last month, from a downwardly revised 883,000 units in July, compared to expectations for a 3% increase to 917,000 units.
The data came as investors were eyeing the outcome of the Fed’s two-day policy meeting, due to conclude later Wednesday. The central bank was expected to announce plans to start tapering its USD85 billion-a-month asset purchase program.
The dollar remained under pressure after a recent series of soft economic data, including the latest U.S. jobs report, saw investors reassess expectations over how much the Fed will cut its stimulus program.
The pound remained near eight-month highs against the dollar, with GBP/USD advancing 0.39% to 1.5966 after the latest BoE minutes showed that no policymakers believed more stimulus is necessary at present.
Policymakers voted unanimously in favor of keeping the benchmark interest rate on hold at 0.5% and the size of the bank’s asset purchase facility unchanged at GBP375 billion.
The minutes showed that policymakers believe the economic recovery in the U.K. is taking hold and outlined signs of a recovery in the euro zone.
The central bank also reiterated its forward guidance that it will not automatically raise interest rates when the U.K. unemployment rate falls below 7%.
Elsewhere, the euro edged lower against the dollar, with EUR/USD slipping 0.09% to 1.3345.
The single currency continued to be supported after data released on Tuesday showed that the closely watched ZEW index of German economic sentiment rose to the highest level since April 2010 in September, on the back of the improved economic outlook for the euro zone.
The dollar was almost unchanged against the Swiss franc, with USD/CHF inching up 0.05% to 0.9264.
Elsewhere, the greenback was higher against its Australian, New Zealand and Canadian counterparts, with AUD/USD dipping 0.05% to 0.9350, NZD/USD falling 0.16% to 0.8226 and USD/CAD adding 0.15% to 1.0310.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, edged down 0.01% to 81.29.
During European afternoon trade, the dollar was lower against the yen, with USD/JPY down 0.20% to 99.92.
Official data showed that U.S. building permits fell by 3.8% to a seasonally adjusted annual rate of 918,000 units in August, from 954,000 the previous month. Analysts had expected building permits to fall by 0.4% to 950,000 units last month.
The report also showed that U.S. housing starts rose 0.9% to a seasonally adjusted rate of 891,000 units last month, from a downwardly revised 883,000 units in July, compared to expectations for a 3% increase to 917,000 units.
The data came as investors were eyeing the outcome of the Fed’s two-day policy meeting, due to conclude later Wednesday. The central bank was expected to announce plans to start tapering its USD85 billion-a-month asset purchase program.
The dollar remained under pressure after a recent series of soft economic data, including the latest U.S. jobs report, saw investors reassess expectations over how much the Fed will cut its stimulus program.
The pound remained near eight-month highs against the dollar, with GBP/USD advancing 0.39% to 1.5966 after the latest BoE minutes showed that no policymakers believed more stimulus is necessary at present.
Policymakers voted unanimously in favor of keeping the benchmark interest rate on hold at 0.5% and the size of the bank’s asset purchase facility unchanged at GBP375 billion.
The minutes showed that policymakers believe the economic recovery in the U.K. is taking hold and outlined signs of a recovery in the euro zone.
The central bank also reiterated its forward guidance that it will not automatically raise interest rates when the U.K. unemployment rate falls below 7%.
Elsewhere, the euro edged lower against the dollar, with EUR/USD slipping 0.09% to 1.3345.
The single currency continued to be supported after data released on Tuesday showed that the closely watched ZEW index of German economic sentiment rose to the highest level since April 2010 in September, on the back of the improved economic outlook for the euro zone.
The dollar was almost unchanged against the Swiss franc, with USD/CHF inching up 0.05% to 0.9264.
Elsewhere, the greenback was higher against its Australian, New Zealand and Canadian counterparts, with AUD/USD dipping 0.05% to 0.9350, NZD/USD falling 0.16% to 0.8226 and USD/CAD adding 0.15% to 1.0310.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, edged down 0.01% to 81.29.