Investing.com - The dollar rose against the other major currencies on Tuesday, as investors awaited the release of U.S. economic reports later in the day, as well as the Federal Reserve’s policy statement scheduled on Wednesday.
USD/JPY declined 0.67% to 113.07.
The yen was boosted after the Bank of Japan made no change to monetary policy, in a widely anticipated decision, as it assesses the economic impact of its decision in January to deploy negative interest rates.
The BoJ maintained its ¥80 trillion base money target and a 0.1% negative interest rate it applies to some reserves.
But the bank also flagged weakness in exports and output due to slowing growth in emerging economies, indicating that more stimulus may be needed in the future.
Investors were turning their attention to the conclusion of the Fed’s two day policy meeting on Wednesday, with most investors expecting no change given recent signs of weakness in the global economy.
EUR/USD slipped 0.17% to 1.1083.
The dollar was higher against the pound and the Swiss franc, with GBP/USD down 0.94% at 1.4167 and with USD/CHF adding 0.12% to 0.9884.
Meanwhile, the Australian and New Zealand dollars were weaker, with AUD/USD down 0.72% at 0.7462 and with NZD/USD retreating 0.46% to 0.6646.
In the minutes of its March policy meeting released earlier Tuesday, the Reserve Bank of Australia said that low inflation means the central bank isn’t ruling out further interest rate cuts but the adoption of negative interest rates by other central banks is creating uncertainty.
The minutes also showed that policymakers spent part of the meeting discussing China’s “longer-run economic performance and risks to growth” in Australia’s biggest trading partner.
USD/CAD advanced 0.94% to 1.3385.
The commodity-related loonie remained under pressure as oil prices pulled back from three-month highs on Monday 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 0.20% at 96.79, the highest since March 10.