Dollar Approaches Multi-Week Highs Ahead of Fed Rate Decision
The US dollar maintained its strong position on Wednesday, hovering around multi-week highs versus key counterparts as market participants looked ahead to the Federal Reserve's upcoming policy announcement.
With growing numbers of traders wagering that this could mark the beginning of a possible sequence of rate increases, the greenback and American government bond yields climbed overnight. The dollar recorded its strongest advances relative to the Japanese yen and the New Zealand dollar, with the kiwi dropping to a two-month trough of $0.5749 and the yen sliding to a one-week low of 155.43 against the dollar.
The shared European currency barely moved, sitting at $1.1535 and remaining close to a one-month bottom of $1.1523 reached on Monday. The British pound likewise stayed near its six-week weakest level, changing hands at $1.3470 after having dipped to $1.3464 on Monday.