Investing.com - The dollar was trading close to six week lows against the euro on Wednesday and was weaker against the yen on the back of growing doubts over whether the Federal Reserve will start to reduce stimulus measures at next week’s policy meeting.
During European morning trade, EUR/USD edged up 0.05% to 1.3767, holding below the high of 1.3794 struck on Tuesday, the strongest level since October 29.
The dollar remained under pressure amid expectations that the Federal Reserve will hold off on tapering its USD85 billion-a-month asset purchase program at its upcoming policy meeting scheduled for December 17-18, despite last week’s stronger-than-forecast U.S. nonfarm payrolls report.
Demand for the shared currency continued to be underpinned as expectations for further monetary easing by the European Central Bank dimmed after the bank held back from fresh rate cuts at last week’s policy meeting.
The euro received an additional boost after European Union finance ministers moved closer to an agreement on a European banking union on Tuesday, a measure which is seen as key in fending off a repeat of the region’s financial crisis.
The dollar shrugged off news that U.S. Congressional leaders reached an agreement on a two year budget deal. Congress will still need to reach a deal to raise the U.S. debt ceiling in February 2014 in order to avert a default.
USD/JPY was down 0.36% to 102.47 after rising to a six-month high of 103.38 on Tuesday.
The pound eased against the dollar, with GBP/USD slipping 0.16% to 1.6419 down from Tuesday’s highs of 1.6466, the strongest level in 27 months.
The dollar was little changed against the Swiss franc, with USD/CHF edging up 0.02% to 0.8874.
The greenback was broadly higher against the Australian, New Zealand and Canadian dollars, with AUD/USD sliding 0.32% to 0.9120, NZD/USD down 0.42% to 0.8274 and USD/CAD unchanged for the day at 1.0601.
The U.S. dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, inched down 0.05% to 79.94.
During European morning trade, EUR/USD edged up 0.05% to 1.3767, holding below the high of 1.3794 struck on Tuesday, the strongest level since October 29.
The dollar remained under pressure amid expectations that the Federal Reserve will hold off on tapering its USD85 billion-a-month asset purchase program at its upcoming policy meeting scheduled for December 17-18, despite last week’s stronger-than-forecast U.S. nonfarm payrolls report.
Demand for the shared currency continued to be underpinned as expectations for further monetary easing by the European Central Bank dimmed after the bank held back from fresh rate cuts at last week’s policy meeting.
The euro received an additional boost after European Union finance ministers moved closer to an agreement on a European banking union on Tuesday, a measure which is seen as key in fending off a repeat of the region’s financial crisis.
The dollar shrugged off news that U.S. Congressional leaders reached an agreement on a two year budget deal. Congress will still need to reach a deal to raise the U.S. debt ceiling in February 2014 in order to avert a default.
USD/JPY was down 0.36% to 102.47 after rising to a six-month high of 103.38 on Tuesday.
The pound eased against the dollar, with GBP/USD slipping 0.16% to 1.6419 down from Tuesday’s highs of 1.6466, the strongest level in 27 months.
The dollar was little changed against the Swiss franc, with USD/CHF edging up 0.02% to 0.8874.
The greenback was broadly higher against the Australian, New Zealand and Canadian dollars, with AUD/USD sliding 0.32% to 0.9120, NZD/USD down 0.42% to 0.8274 and USD/CAD unchanged for the day at 1.0601.
The U.S. dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, inched down 0.05% to 79.94.