Dollar Edges Higher Ahead Of Fed Meeting

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Includes: UDN, USDU, UUP
by: Investing.com

The dollar edged higher against a basket of other major currencies on Wednesday, as investors awaited the upcoming Federal Reserve policy statement for fresh cues on the direction of monetary policy.

The dollar inched higher against the yen, with USD/JPY rising 0.14% to 112.15 by 08.02 GMT, holding close to Tuesday's six-week peaks of 112.30.

The Fed was widely expected to keep interest rates on hold at the conclusion of its two-day policy meeting later Wednesday, but investors will be watching for any indications that a June rate hike is on the cards.

The U.S. dollar index, which measures the greenback's strength against a trade-weighted basket of six major currencies, was up 0.13% at 98.91.

The euro was a touch lower, with EUR/USD dipping 0.12% to 1.0917, not far from last week's five-and-a-half month highs of 1.0949.

Investors were looking ahead to euro zone figures on economic growth in the first three months of the year due out later in the day.

Traders were also monitoring political developments in the French presidential election ahead of a televised debate between centrist candidate Emmanuel Macron and anti-euro far-right leader Marine Le Pen later Wednesday.

Sterling also edged lower, with GBP/USD slipping 0.09% to 1.2927 ahead of survey data on the UK construction sector, which was expected to show a small slowdown in growth.

Meanwhile, the New Zealand dollar was steady, with NZD/USD at 0.6940, following the release of stronger-than-expected domestic employment data.

Overall employment rose 1.2% in the first quarter, following a downwardly revised 0.7% increase the previous quarter, while the unemployment rate fell back to 4.9%.

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