Investing.com - The dollar was mixed against the other major currencies on Tuesday as market participants positioned ahead of this week’s keenly anticipated policy announcement by the Federal Reserve.
During U.S morning trade, the dollar was higher against the yen, with USD/JPY rising 0.26% to 99.32.
Investors were focused on the outcome of the Fed’s two-day policy meeting, which concludes on Wednesday. The central bank was expected to announce plans to start rolling back its USD85 billion-a-month asset purchase program.
The dollar showed little reaction after data on Tuesday showed that U.S. consumer prices rose 0.1% in August, below forecasts for a 0.2% increase. Consumer inflation rose by 1.5% on a year-over-year basis, undershooting expectations for a 1.6% gain.
Core inflation edged up 0.1% in August, bringing the annual rate of core inflation to 1.8%, in line with forecasts.
Elsewhere, the euro was slightly higher against the dollar, with EUR/USD easing up 0.12% to 1.3349.
The single currency hit session highs earlier after a report showed that the closely watched ZEW index of German economic sentiment rose to the highest level since April 2010 in September.
The German ZEW index rose to 49.6 in September from 42.0 last month, on the back of the improved economic outlook for the euro zone. Analysts had forecast a reading of 46.0.
The pound was steady close to eight-month highs against the dollar, with GBP/USD inching up 0.02% to 1.5900, after rising as high as 1.5936 earlier.
Sterling came off session highs after data showed that U.K. consumer price inflation ticked down to 2.7% on a year-over-year basis in August from 2.8% in July.
The dollar was almost unchanged against the Swiss franc, with USD/CHF dipping 0.02% to 0.9272.
Elsewhere, the greenback was broadly weaker against its Australian, New Zealand and Canadian counterparts, with AUD/USD rising 0.43% to 0.9357, NZD/USD advancing 0.82% to 0.8236 and USD/CAD down 0.33% to 1.0290.
The minutes of the Reserve Bank of Australia’s September meeting said Tuesday that further rate cuts remain possible but are not imminent and added that a further decline in the Australian dollar would be “helpful” to the economy.
In Canada, data released on Tuesday showed that manufacturing sales increased by 1.7% in July, more than expectations for a 1% increase.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, dipped 0.07% to 81.37.
During U.S morning trade, the dollar was higher against the yen, with USD/JPY rising 0.26% to 99.32.
Investors were focused on the outcome of the Fed’s two-day policy meeting, which concludes on Wednesday. The central bank was expected to announce plans to start rolling back its USD85 billion-a-month asset purchase program.
The dollar showed little reaction after data on Tuesday showed that U.S. consumer prices rose 0.1% in August, below forecasts for a 0.2% increase. Consumer inflation rose by 1.5% on a year-over-year basis, undershooting expectations for a 1.6% gain.
Core inflation edged up 0.1% in August, bringing the annual rate of core inflation to 1.8%, in line with forecasts.
Elsewhere, the euro was slightly higher against the dollar, with EUR/USD easing up 0.12% to 1.3349.
The single currency hit session highs earlier after a report showed that the closely watched ZEW index of German economic sentiment rose to the highest level since April 2010 in September.
The German ZEW index rose to 49.6 in September from 42.0 last month, on the back of the improved economic outlook for the euro zone. Analysts had forecast a reading of 46.0.
The pound was steady close to eight-month highs against the dollar, with GBP/USD inching up 0.02% to 1.5900, after rising as high as 1.5936 earlier.
Sterling came off session highs after data showed that U.K. consumer price inflation ticked down to 2.7% on a year-over-year basis in August from 2.8% in July.
The dollar was almost unchanged against the Swiss franc, with USD/CHF dipping 0.02% to 0.9272.
Elsewhere, the greenback was broadly weaker against its Australian, New Zealand and Canadian counterparts, with AUD/USD rising 0.43% to 0.9357, NZD/USD advancing 0.82% to 0.8236 and USD/CAD down 0.33% to 1.0290.
The minutes of the Reserve Bank of Australia’s September meeting said Tuesday that further rate cuts remain possible but are not imminent and added that a further decline in the Australian dollar would be “helpful” to the economy.
In Canada, data released on Tuesday showed that manufacturing sales increased by 1.7% in July, more than expectations for a 1% increase.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, dipped 0.07% to 81.37.