Forex – dollar back to the Fed


© Reuters. The dollar is lower, in view of the policy decision of the Fed

Investing.com – The dollar declined against a basket of currencies on Wednesday as investors await the conclusion of the monetary policy meeting to two days from the federal Reserve.

The dollar index, which measures the strength of the dollar against a basket of six major currencies, was down 0.20% – 93,64 at 10:25 AM (14:25 GMT).

The Fed is expected to greatly raise its interest rates for the second time this year at its meeting and, with a rate increase almost certain, the market players will seek to know whether the central bank plans to accelerate the pace of rate hikes this year.

The data of Wednesday, announcing a price rise in production in the last month have pointed out that inflation would continue to accelerate this year, in the wake of a report showing a moderate rise in consumer prices in may.

The euro rose against the dollar, with a rise of 0.23% to 1,1771, traders are anticipating the meeting of the european central Bank on Thursday, while the bank could announce its intention to slow down the bond purchase program.

The dollar was little changed versus the yen, with the USD / JPY to 110.39 after having hit a high of three weeks of 110.72 before.

The british pound was down against the u.s. dollar, with the GBP / USD 1.3361 after data showing that inflation in the Uk remained steady in may, despite the pressure on oil prices.

The disappointing data on inflation has weakened the forecasts of a rate hike by the Bank of England in August.

In emerging markets, the dollar is advancing against the {{18| Turkish lira}} and has fallen against the south african rand in view of the next increase of the Fed.

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