The dollar rose today, Wednesday, amid quiet trading, as investors await the monetary policy decision of the Federal Reserve (the US Central Bank) scheduled for next week, while the euro fell from Near the highest level in nine months.
The euro fell 0.12% once morest the dollar to $1.088, which is just below the $1.093 level it reached on Friday, which was the highest level since early May.
The dollar rose 0.1% once morest the yen, recording 130.28 yen per dollar, following hitting an eight-month low of 127.22 yen per dollar on January 16.
Low global energy prices and the resulting slowdown in inflation in advanced economies have led to speculation that the Federal Reserve and other central banks will soon stop raising interest rates.
As a result of these expectations, the dollar index, which had risen on the back of the Federal Reserve’s interest rate hike last year, fell more than 11% from the 20-year high it hit in September at 114.78.
The dollar index rose 0.11% to 102.02 today, Wednesday, while the pound sterling fell 0.23% to 1.231 dollars.
Investors widely expect the US central bank to raise interest rates by 25 basis points next Wednesday, compared to an increase of 50 basis points in December.
The Australian dollar recorded the highest level in more than 5 months today, Wednesday, supported by inflation data that exceeded expectations, as it boosted expectations of the Australian Central Bank raising interest rates.
The Australian dollar rose in the latest trading by 0.81%, to $0.71.
Meanwhile, the New Zealand dollar fell 0.32% to $0.649, following New Zealand’s annual inflation of 7.2% in the fourth quarter came in below the central bank’s forecast of 7.5%.
