Investing.com - The dollar was little changed against the other major currencies on Tuesday as markets awaited the outcome of the Federal Reserve’s policy-setting meeting, amid expectations for a small reduction in the bank’s stimulus program.
During European morning trade, the dollar pushed higher against the yen, with USD/JPY rising 0.19% to 99.25.
Investors remained cautious ahead of the outcome of the Fed’s two-day policy meeting on Wednesday after a recent series of lackluster U.S. data raised doubts over whether the bank will announce plans to start rolling back its USD85 billion-a-month bond buying program.
The dollar weakened broadly on Monday after former U.S. Treasury Secretary Lawrence Summers withdrew from the contest to succeed Ben Bernanke as the next chairman of the U.S. central bank.
Summers’ was perceived as being likely to unwind economic stimulus measures more aggressively than the other main contender for the post, Janet Yellen.
Elsewhere, the euro edged higher against the dollar, with EUR/USD up 0.09% to 1.3346.
The pound was close to eight-month highs against the dollar, with GBP/USD climbing 0.18% to 1.5926 ahead of U.K. data on consumer inflation later in the session.
The dollar was steady against the Swiss franc, with USD/CHF inching down 0.06% to 0.9268.
Elsewhere, the greenback was almost unchanged against its Australian, New Zealand and Canadian counterparts, with AUD/USD dipping 0.01% to 0.9315, NZD/USD easing up 0.10% to 0.8179 and USD/CAD edging down 0.02% to trade at 1.0322.
The Australian dollar remained steady after the minutes of the Reserve Bank of Australia’s September meeting said further rate cuts remain possible but were not imminent and added that a further decline in the Australian dollar would be “helpful” to the economy.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, dipped 0.05% to 81.39.
The ZEW Institute was to release its closely watched report on German economic sentiment later Tuesday, while the U.S. was to release data on consumer price inflation.
During European morning trade, the dollar pushed higher against the yen, with USD/JPY rising 0.19% to 99.25.
Investors remained cautious ahead of the outcome of the Fed’s two-day policy meeting on Wednesday after a recent series of lackluster U.S. data raised doubts over whether the bank will announce plans to start rolling back its USD85 billion-a-month bond buying program.
The dollar weakened broadly on Monday after former U.S. Treasury Secretary Lawrence Summers withdrew from the contest to succeed Ben Bernanke as the next chairman of the U.S. central bank.
Summers’ was perceived as being likely to unwind economic stimulus measures more aggressively than the other main contender for the post, Janet Yellen.
Elsewhere, the euro edged higher against the dollar, with EUR/USD up 0.09% to 1.3346.
The pound was close to eight-month highs against the dollar, with GBP/USD climbing 0.18% to 1.5926 ahead of U.K. data on consumer inflation later in the session.
The dollar was steady against the Swiss franc, with USD/CHF inching down 0.06% to 0.9268.
Elsewhere, the greenback was almost unchanged against its Australian, New Zealand and Canadian counterparts, with AUD/USD dipping 0.01% to 0.9315, NZD/USD easing up 0.10% to 0.8179 and USD/CAD edging down 0.02% to trade at 1.0322.
The Australian dollar remained steady after the minutes of the Reserve Bank of Australia’s September meeting said further rate cuts remain possible but were not imminent and added that a further decline in the Australian dollar would be “helpful” to the economy.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, dipped 0.05% to 81.39.
The ZEW Institute was to release its closely watched report on German economic sentiment later Tuesday, while the U.S. was to release data on consumer price inflation.