By: Barbara Zigah
The U.S. Dollar Index held relatively steady versus major currencies in Tokyo trading today, remaining just shy of the newly established 1-month high struck during yesterday’s trading day. As reported at 3:21 p.m. (JST) in Tokyo, the U.S. Dollar Index, which is a gauge of the greenback’s value versus a grouping of six major currencies, traded at 76.289. DXY, a .1% slip from yesterday’s high of 76.817 .DXY.
Investor focus remains on the United States, and the release of a statement from the Federal Reserve Bank upon the conclusion of the 2-day rate setting meeting later today. While some investors are hopeful the statement will indicate an alteration of the Fed’s current loose monetary policy, most analysts are skeptical that any such alteration of current policy or rate change will be forthcoming. One European bank trader commented that while he foresees the Fed perhaps “tweaking” the statement, it is highly doubtful that they will be anything but cautious when it comes to liquidity tightening.
In recent days, market players have been booking profits on USD long positions, driving losses in higher-yielding currencies such as the single currency Euro and the Australian Dollar. Jitteriness among investors has helped the Japanese Yen, boosting it to a 4-week peak versus the Australian Dollar and Euro early in the trading week.
Ahead of Fed Statement U.S. Dollar Index Steadies
After working on Wall Street, Barb began her second career as a freelance writer at Daily Forex, where the CEO recognized fresh, untapped potential and was willing to give her a try. She’s never looked back. Since then, she’s worked steadily as a freelance writer and editor in the financial services and Forex-related industry.