Follow Al Rai
The dollar edged up slightly against major currencies including the euro, yen, and British pound on Tuesday, as investors made moves ahead of a series of central bank meetings in search of fresh clues on the economic outlook and interest rate path.
The Federal Reserve (the US central bank) is scheduled to announce its monetary policy decision on Wednesday, while the European Central Bank will announce its decision on Thursday, and the Bank of Japan will wrap up the week on Friday.
All three banks are expected to keep interest rates unchanged, so the focus will be on any hints policymakers might drop regarding their future outlook.
The dollar stabilized after coming under pressure following a sell-off in high-flying artificial intelligence stocks last week.
The euro fell 0.25% to $1.1144.
"The dollar has rebounded ahead of the Federal Reserve meeting, and sentiment toward AI has stabilized a bit," said Kevin Ford, currency and macroeconomic analyst at Convera.
The yen was one of the best-performing major currencies last week, climbing about 0.75% against the dollar for its biggest weekly gain since early September, as AI-related concerns in the stock market drove investors toward the safe-haven currency.
The dollar rose 0.15% to 157.73 yen. The British pound dropped 0.16% to $1.3317.
The dollar index, which measures the US currency's performance against a basket of rival currencies including the yen and euro, rose 0.2% to 102.22.
The Reserve Bank of New Zealand and the Bank of Canada will also announce their monetary policy decisions on Wednesday, and both are expected to raise interest rates.
The New Zealand dollar rose 0.33% to $0.5699. The Canadian dollar fell 0.14% to 1.404 Canadian dollars.
Know more about this story?Send us a tip
Ask about this report — answers stay grounded in its text.
