Forex - Dollar Treads Water with Fed Meeting in Focus

© Reuters. Dollar steady ahead of Fed meeting

Investing.com - The dollar was little changed against a basket of the other major currencies on Tuesday, as investors awaited the outcome of the Federal Reserve’s meeting on Wednesday, where it was expected to announce the first rate hike of 2018.

The , which measures the greenback’s strength against a basket of six major currencies, was at steady at 89.47 by 04:11 AM ET (08:11 AM GMT).

With a rate hike almost fully priced in investors will be closely watching for indications from the Fed about whether market conditions can support four rate hikes this year, rather than the three it projected in December.

An upbeat assessment of the U.S. economy by newly-installed Fed Chairman late last month fueled expectations that a fourth rate hike could be in store.

The dollar was a touch lower against the euro, with up 0.11% at 1.2349.

The single currency was supported by renewed expectations that the European Central Bank will wind down its stimulus program later this year and start to raise interest rates around the middle of next year.

The euro was boosted on Monday after Reuters reported that ECB policymakers are from bond purchases to the future path of interest rates.

Sterling was higher, with last up 0.24% at 1.4056, not far from Monday’s one-month highs of 1.4087.

The pound rallied on Monday after the UK and the European Union reached an agreement on a 21-month .

The dollar was higher against the yen, with advancing 0.34% to 106.45.

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