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Dollar remains broadly higher with all eyes on Fed

Published 03/14/2016, 11:50 AM
Dollar remains on the upside as markets eye Fed
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Investing.com - The dollar remained broadly higher against the other major currencies on Monday, as investors continued to focus on the Federal Reserve’s upcoming policy meeting this week.

EUR/USD slid 0.46% to 1.1097.

The single currency remained under pressure after the European Central Bank cut interest rates across the euro zone to new record lows and boosted its quantitative easing program last Thursday.

The ECB cut its benchmark interest rate to a record-low of zero from 0.05% and boosted its quantitative easing program by €20 billion per month to €80 billion, starting in April.

USD/JPY was little changed at 113.78.

Investors were turning their attention to the outcome of Japanese and U.S. central bank policy meetings scheduled this week.

The Fed was not widely expected to raise interest rates at the conclusion of its meeting on Wednesday, given recent signs of weakness in the global economy

But the U.S. central bank was likely to signal that rates will rise fairly soon as long as U.S. inflation and jobs continue to strengthen.

The Bank of Japan was also expected to keep monetary policy unchanged when its meeting ends on Tuesday after its shock decision to adopt negative interest rates in January, which did little to weaken the yen.

The dollar was higher against the pound and the Swiss franc, with GBP/USD down 0.47% at 1.4316 and with USD/CHF advancing 0.42% to 0.9867.

Meanwhile, the Australian and New Zealand dollars were weaker, with AUD/USD down 0.79% at 0.7504 and with NZD/USD retreating 0.89% to 0.6684.

USD/CAD climbed 0.56% to 1.3289. The commodity-related loonie weakened as oil prices pulled back from three-month highs after Iranian Oil Minister Bijan Zanganeh said his country won't join a group production freeze until it doubles its post-sanctions output.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.43% at 96.64, pulling away from Friday’s one-month low of 95.94

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