© Reuters. The dollar is moving towards the Fed
Investing.com – The dollar rose slightly on Monday against a basket of currencies, as markets awaited an upcoming federal Reserve meeting where it is expected to raise interest rates and offering clues on the monetary tightening for the rest of the year.
The dollar index, which measures the greenback’s strength against a basket of six major currencies, rose slightly to 89,91 at 04:27 AM (08:27 AM GMT).
While the Fed expects that the rate increase of a quarter of a point Wednesday, as investors focus on the question of whether the authorities expect four rate hikes this year, rather than the three planned hikes in December.
An optimistic assessment of the economy by the new Fed chairman Jerome Powell, at the end of last month, has fueled speculation that a fourth interest rate hike could be considered.
Investors remained cautious in the face of fears that the policies of protectionist trade can be a barrier to growth in the united states and around the world.
The trade was the order of the day as the group of finance ministers of the G20 was ready to hold two-day meeting in Buenos Aires, from Monday.
The yen shelter appreciated slightly, with a decline of the USD / JPY 0.12% 105,87.
The appetite for risk has also been reached after prime minister Shinzo Abe has taken on the responsibility of a loss of confidence in the government in the face of a growing scandal that has not seen its popularity plunge, but has denied his involvement in the crony-in an agreement of land with a operator of school.
The scandal has raised concerns about the ability of Eba to continue its policy Abenomics, which include monetary easing aggressive.
The euro has fallen slightly against the dollar, with the EUR / USD sliding 0.14% to 1,2273.
The pound sterling was also slightly lower, with a decline of 0.1% to 1,3927 for the GBP / USD.