Dollar Gains for 3rd Session
The dollar index strengthened to 102.2 on Tuesday, extending gains for a third consecutive session and reaching its highest level in about two weeks. Investors brace for a busy week of monetary policy decisions from major central banks, with the FOMC meeting kicking off today. The Federal Reserve is widely expected to leave the fed funds rate unchanged, although investors will look for clues on whether a rate hike in December remains a possibility. The European Central Bank, Bank of Japan and Bank of Canada are also due to announce their policy decisions this week. The greenback also drew support from improved stability in equity markets, as sentiment surrounding AI-related stocks steadied following last week’s volatility. Meanwhile, the dollar traded mostly higher against the euro, which remained under pressure from France’s deteriorating fiscal outlook and mounting concerns in the bond market.
The dollar index strengthened to 102.2 on Tuesday, extending gains for a third consecutive session and reaching its highest level in about two weeks. Investors brace for a busy week of monetary policy decisions from major central banks, with the FOMC meeting kicking off today. The Federal Reserve is widely expected to leave the fed funds rate unchanged, although investors will look for clues on whether a rate hike in December remains a possibility. The European Central Bank, Bank of Japan and Bank of Canada are also due to announce their policy decisions this week.
The greenback also drew support from improved stability in equity markets, as sentiment surrounding AI-related stocks steadied following last week’s volatility. Meanwhile, the dollar traded mostly higher against the euro, which remained under pressure from France’s deteriorating fiscal outlook and mounting concerns in the bond market.