© Reuters. The dollar is stable in view of the Fed
Investing.com – The dollar is stable in the face to a basket of currencies on Wednesday before a rate increase widely expected by the federal Reserve later in the day.
The index U. S. dollar, which measures the greenback’s strength versus a weighted basket based on the trade of six major currencies, was at 94,04 at 03:50 AM (08h50 GMT), after having plunged to a low of 93,88.
The dollar was slightly lower overnight after democrat Doug Jones has defeated republican Roy Moore in a race bitter in the Senate of the United States in Alabama.
The outcome of the election has further reduced the Senate majority to the republicans, which could make it more difficult for the administration to Trump advance its economic agenda.
Investors await the outcome of the monetary policy meeting to two days of the Fed’s Wednesday and with a rate increase already seen, investors are focusing more on the prospects of inflation expectations and the guidance on rate hikes next year.
The central bank will announce its rate decision at 19: 00 GMT Wednesday, followed by a statement. The chair Janet Yellen will hold a press conference at 19: 30 GMT.
Concerns about moderate inflation have raised concerns about the outlook for policy tightening in 2018, but the data on Tuesday showed that producer prices in the United States have jumped by 3.1% compared to the previous year.
This is the largest increase since January 2012 and has indicated that a period of inflation, more moderate-may have run its course.
The dollar was down against the yen, with a decline of the USD / JPY 0.18% 113,34, after having hit a high of one month of 113,74 Tuesday.
The euro was little changed against the dollar, with the{{1| EUR / USD}} to 1,1742, is now above the lowest of the three days of 1,1716.
The pound sterling has increased, with GBP / USD rising 0.23% to 1,3348.
The Bank of England and the european central Bank are due to meet later in the week and should keep their rates stable.
