Dollar hovers near peaks as Fed heads for taper
Nov 03, 2021 04:30AM ET
The dollar floated close to late pinnacles versus the euro and the yen on Wednesday as financial backers sat tight for the U.S. Central bank to begin loosening up its pandemic-period upgrade and to survey Chair Jerome Powell's interpretation of inflationary tensions.
The dollar index closed unchanged on the day at 94.11, close to its 2021 high of 94.563 set the month before.
The dollar was also level against the euro at $1.1579, close to the $1.1522 low reached in October, which marked the most grounded level for the dollar since July 2020.
The dollar/yen exchanged at 113.94, approaching a four-year high.
In its approach proclamation, the Fed is expected to announce a tightening of its $120 billion-per-month resource purchasing program.
Dealers are centered around hints about what that implies for rate increases, following a month of seismic security market moves, fully expecting climbs one year from now. (North America)
Experts are separated regarding what the Fed meeting and proclamation will mean for the dollar.
The dollar negative case today is that the tightening is broadly expected and an innately hesitant Fed, worried about disturbing the security market, doesn't change its assertion significantly, ING tacticians composed.
Financial backers will observe intently for Chair Powell's appraisal of swelling after other national banks have flagged a more hawkish slant even with rising value pressures, in spite of the fact that whether that implies higher loan costs before long is still to be seen.