Investing.com - The greenback traded mixed to higher against most major currencies on Tuesday after the International Monetary Fund hiked its 2014 global growth forecast, while expectations for further cuts to Federal Reserve stimulus programs this month also bolstered the greenback.
Profit taking trimmed the dollar's gains, sending it in and out of negative territory at times.
In U.S. trading on Tuesday, EUR/USD was up 0.06% at 1.3561.
In revisions to its World Economic Outlook report published on Tuesday the IMF said it expects the global economy to grow by 3.7% in 2014, up from an October forecast of 3.6% growth.
The news fueled expectations for central banks to wind down stimulus programs such as bond purchases going forward, the Federal Reserve especially, as the multilateral lending institution predicted the U.S. economy to expand 2.8%, up from an October forecast of 2.6%.
Many market participants expect the Fed to trim its quantitative easing program to USD65 billion from the current USD75 billion at its next policy meeting on Jan. 29.
Fed bond purchases aim to prop up the economy by suppressing long-term i
Profit taking trimmed the dollar's gains, sending it in and out of negative territory at times.
In U.S. trading on Tuesday, EUR/USD was up 0.06% at 1.3561.
In revisions to its World Economic Outlook report published on Tuesday the IMF said it expects the global economy to grow by 3.7% in 2014, up from an October forecast of 3.6% growth.
The news fueled expectations for central banks to wind down stimulus programs such as bond purchases going forward, the Federal Reserve especially, as the multilateral lending institution predicted the U.S. economy to expand 2.8%, up from an October forecast of 2.6%.
Many market participants expect the Fed to trim its quantitative easing program to USD65 billion from the current USD75 billion at its next policy meeting on Jan. 29.
Fed bond purchases aim to prop up the economy by suppressing long-term i