Dollar strengthens against major currencies While investors are keeping an eye on the outcome of the Federal Reserve’s (Fed) monetary policy meeting tonight.
As of 8:09 p.m. GMT, the dollar was 0.32% higher to 114.23 yen, while the euro rose 0.13% to 128.82 and fell 0.2% to $1.128. The index measures the dollar’s movements against six major currencies in the money basket, up 0.17% to 96.11.
However, trading was sparse. before the Fed reveals the results of today’s meeting.
Analysts expect the Fed to hold interest rates at 0.00-0.25% at today’s monetary policy meeting. But the main focus will be on a press conference following the meeting of Fed Chairman Jerome Powell, where markets will keep an eye on the fed’s rate hike direction.
The CME Group’s FedWatch Tool indicates that investors are giving as much as 100 per cent the interest the Fed will raise interest rates by 0.25% at its March monetary policy meeting. This is the month when the Fed ended its quantitative easing (QE) bond-buying program, with three more rate hikes expected this year.
On the Goldman side Sachs forecasts the Fed will raise interest rates more than four times this year and will begin cutting its balance sheet in July or sooner. From the current skyrocketing to nearly 9 trillion dollars.
The dollar was also supported by investors buying the dollar as a safe haven currency. Amid concerns about the conflict between Russia and the West over Ukraine
