The U.S. dollar remained largely unchanged against major currencies on Wednesday as markets awaited the Federal Reserve’s upcoming interest‑rate decision. The currency was flat against the euro at $1.1130, just above the low of $1.1120 that it hit in early May, and was up 0.14 % to 158.19 yen. Traders expect the Fed to keep policy unchanged, but the CME Group’s FedWatch tool shows a 78 % probability that the central bank could raise rates by at least 25 basis points in December. “There’s a general consensus that the Fed will not change policy,” said Marc Chandler, chief market strategist at Bannockburn Global Forex. “But with (Fed chair Kevin) Warsh’s dislike for forward guidance, that means there’s not going to be a strong pushback against market expectations, which are solidly for a December rate hike.” The dollar index, which measures the greenback against a basket of six other currencies, was flat at 102.37. The yield on the 2‑year Treasury note rose 3.73 basis points to 4.774 %, reflecting expectations for future policy moves. In New Zealand, the dollar fell sharply after the Reserve Bank unexpectedly left its policy rate unchanged. Meanwhile, British finance minister John Healey announced a package of tax increases aimed at banks, gambling operators, savers, and landlords, and proposed tighter value‑added tax rules for online marketplaces such as Amazon to fund the measures. The pound was flat against the dollar at $1.33 and was down about 0.13 % versus the euro.
Article source: San Juan Daily Star | Image credit: San Juan Daily Star