Breaking News
0

Dollar mixed ahead of Fed's interest rate decision

ForexJun 13, 2018 10:59AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. U.S. dollars and other world currencies lie in a charity receptacle at Pearson international airport in Toronto

By Richard Leong

NEW YORK (Reuters) - The dollar was weaker against the euro but rose against some emerging market currencies and hit a three-week high against the yen on Wednesday as investors braced for what is expected to be the Federal Reserve's second interest rate increase of 2018.

The euro gained ground on the greenback amid expectations that the European Central Bank on Thursday would signal its intention to taper its 2.55 trillion euro ($3 trillion) bond purchasing program later in 2018.

Some emerging market currencies weakened versus the dollar on the possibility of a Fed rate hike, while others rose. Countries like Turkey with large external financing needs are particularly vulnerable to rising dollar-funding costs.

The U.S. central bank is due to release its latest policy statement at 2 p.m. EDT (1800 GMT), followed by a press conference half an hour later by Fed Chairman Jerome Powell.

The Fed is expected to raise its benchmark overnight lending rate by a quarter of a percentage point to a range of 1.75 percent to 2.00 percent. Investors will scour the statement for clues as to whether the Fed will raise rates once or twice more in the second half of 2018.

"If they paint a picture of stronger inflation and growth, the market would take that as dollar-positive," said Richard Scalone, co-head of foreign exchange at TJM Brokerage in Chicago.

At 10:17 a.m. (1417 GMT), the dollar was flat at 110.39 yen after earlier hitting a three-week high at 110.71 yen.

The euro was up 0.25 percent at $1.1770 (EUR=) and was 0.36 percent stronger at 129.96 yen (EURJPY=).

Among emerging market currencies, the Turkish lira was down 1 percent at 4.646 lira per dollar, while South Africa's rand firmed 0.2 percent to 13.300 rand per dollar.

The British pound dipped to a one-week low of $1.3309 , unable to hold gains made on Tuesday when it briefly rose to $1.3424 after British Prime Minister Theresa May saw off a parliamentary rebellion over amendments to a bill for the country's exit from the European Union next year.

Slower-than-expected British inflation data on Wednesday also hurt the pound, as it weakened the case for a Bank of England rate rise in August.

The Canadian dollar, which has fallen heavily in recent weeks on concerns an escalating trade dispute with the United States would hit Canada's economy hard, rebounded nearly 0.2 percent to C$1.2992 , above what was nearly a three-month low of C$1.3068 set last week.

The Norwegian crown rallied for a second straight session against the dollar and the euro (EURNOK=), hitting its strongest level against the single currency since late October after an upbeat central bank survey raised expectations of tighter monetary policy.

Dollar mixed ahead of Fed's interest rate decision
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments
adeel zulfiqar
adeel zulfiqar Jun 13, 2018 1:01PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
buying or selling?
Reply
0 0
Mersal Arasan
Mersal Arasan Jun 13, 2018 12:54AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Buying or selling
Reply
0 0
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email