The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, edged up to 93.99 by 03.39 a.m.
The index touched a low of 93.46 on Tuesday, its weakest since June 2016.
The dollar was steady against the yen, with USD/JPY at 111.85, holding gains after ending Tuesday’s session up 0.81%.
The sluggish inflation outlook has raised doubts over whether the Fed will be able to stick to plans for a third rate hike this year.
Investing.com -Investing.com – The U.S. dollar pulled back from 13-month lows against a basket of the other major currencies on Wednesday as investors awaited the outcome of the Federal Reserve’s latest policy meeting later in the day.
U.S. Dollar small alteration after hitting 13-month low as Federal starts meeting
The dollar rose 0.7 percent against the Japanese yen JPY= to 111.86 yen.
“With the Fed on the horizon it seemed prudent of the markets to cover some of the dollar shorts,” he said.
The Ifo business sentiment index reached a record high, showing that Germans were “euphoric” about the country’s business climate.
FILE PHOTO: Bank notes of different currencies, including Euro, U.S. Dollar, Turkish Lira or Brazilian Reais, are photographed in Frankfurt, Germany, in this illustration picture taken May 7, 2017.
The euro EUR= rose to its highest since August 2015 and was just a hair below a 2-1/2-year high, boosted by a stronger-than-expected German business survey.
U.S. dollar licks its wounds at 13-month low next Federal seen as pacifist
Since European Central Bank President Mario Draghi signalled in June that the central bank could tweak its asset purchase, investors have been flocking to the euro.
The dollar also slipped to 111.11 yen JPY=, edging near 110.625, its 5 1/2-week low touched on Monday.
A U.S. Dollar note is seen in this June 22, 2017 illustration photo.
TOKYO (Reuters) – The dollar licked its wounds at 13-month lows against a basket of currencies on Thursday after the U.S. Federal Reserve’s policy statement was perceived to be slightly on the dovish side.
The next support levels are seen at 93.019, its June 2016 low, and 91.919, a 16-month low touched in May 2016, though break of these would be seen as major bearish signals.
collected by :kiven Dixter