The US Dollar made gains against the Euro and Japanese Yen as investors speculate that Wednesday’s Federal Policy will show that the US Central Bank will not curb back its monetary stimulus programme.
The Fed meeting is this week’s primary focus and all eyes will be on the Fed’s policy-setting committee meeting statement and Chairman Ben Bernanke’s remarks on Wednesday. Since uncertainty over the when the Fed might start paring back on its asset purchase program has roiled markets the past few weeks, investors will be looking for more clarity on the Fed’s intentions from the post meeting comments.
“Investors are growing comfortable with the idea that the Fed won’t do anything major at this meeting,” said Nicholas Colas, chief market strategist at brokerage firm BNY ConvergEx Group. “There is still a chance for more volatility heading into the meeting,” he said, so investors are unlikely to take too much of a stand ahead until they hear what Bernanke has to say.
The Dollar halted a five day decline as economists expect a report due for release on Tuesday will show that the cost of living in the US rose in May after posting two consecutive months of decline.
“We’re generally positive on the dollar for the rest of this year,” said Mitul Kotecha, the global head of foreign-exchange strategy at Credit Agricole SA “We would see the strengthening of the U.S. economy also giving support to push yields higher alongside this impact of less Treasury buying by the Fed.”
US Dollar (USD) Current Exchange Rates
The US Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.6355
The US Dollar/Euro Exchange Rate is currently in the region of: 0.7492
The US Dollar/Australian Dollar Exchange Rate is currently in the region of: 1.0425
The US Dollar/Japanese Yen Exchange Rate is currently in the region of: 94.8319
The US Dollar/Canadian Dollar Exchange Rate is currently in the region of: 1.0166
The Pound Sterling/ US Dollar Exchange Rate is currently in the region of: 1.5734
The Euro/US Dollar Exchange Rate is currently in the region of: 1.3346
The Australian Dollar/US Dollar Exchange Rate is currently in the region of: 0.9591
The Canadian Dollar/US Dollar Exchange Rate is currently in the region of: 0.9836
The New Zealand Dollar/US Dollar Exchange Rate is currently in the region of: 0.8059
(Correct as of 14:20 pm GMT)
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