The dollar is on pause, the market tries to understand whether the Fed will increase the rates in the near future
The dollar has taken a pause during the Asian trading on Tuesday after the recent growth, moving away from the peaks of 7 months against the basket of major currencies. Meanwhile, investors estimated the possibility of the Fed increase of the interest rates.
The US currency index, which tracks the dynamics of the dollar versus the basket of six major currencies, has fallen by 0.15 percent in the morning, reaching 97.741; while during the yesterday’s session, it grew up to a value of 98.169. This has been the first time since 10 March.
The dollar has slightly sagged against the Japanese yen over the day and it is being traded around 103.98.
The experts claim that the market still keeps the focus of the Fed’s interest rate policy. Herewith, the rate hike is still expected in December.
On Monday Stanley Fischer, the deputy head of the Federal Reserve, refrained from hasty changes in the policy framework in order to increase the GDP growth. However, he said that the stability of the US economy could be jeopardized if interest rates remained at low levels, as it has been today.
The euro has grown up by 0.15 percent, amounting to $ 1.1014, moving away from the minimum of nearly 3 months -$ 1.0962, which was set on Monday. Meanwhile, investors are waiting for the European Central Bank meeting, scheduled for this week.
At this meeting, the European Central Bank may discuss the probability of making technical amendments to the program of buying assets due to which the bank will be able to extend the scheme after the current term expires in March 2017.
The euro has risen against the yen by 0.26 percent, reaching 114.52.
The pound has grown up to 0.35 percent, amounting $ 1.2224.