The dollar held near a two-week high early on Wednesday ahead of the Federal Res...
TOKYO - The dollar held near a two-week high early on Wednesday ahead of the Federal Reserve’s closely-watched policy decision later in the day, supported by a surprisingly dovish European Central Bank and bearish eurozone economic data.
Focus was on whether the greenback can retain its strength after the Fed’s two-day policy meeting ends later on Wednesday. “But there will be a lot to digest at this FOMC, such as the Fed’s views on the economy and prices and Chair Powell’s comments. It is hard to tell which of these factors the market decides to latch on and react to.”
The common currency dropped along with a decline in German government bond yields, which hit a new record low on Tuesday, after ECB chief Mario Draghi said the bank will need to ease policy again if inflation doesn’t head back to its target.
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