Dollar Holds Gains Ahead of Fed Decision
The US dollar index held around 102.4 on Wednesday after advancing for three consecutive sessions, supported by investor caution ahead of the Federal Reserve’s upcoming policy decision. The central bank is widely expected to keep interest rates unchanged, although traders will look for clues about the possibility of a rate hike in December. On the corporate front, Alphabet and Microsoft are set to release earnings after the market closes on Wednesday, with investors assessing their results for insights into AI-related demand, which has contributed to US economic growth. Meanwhile, the dollar gained more than 1% against the kiwi after the Reserve Bank of New Zealand unexpectedly kept its cash rate unchanged, defying expectations for a 25-basis-point increase. Investors will also monitor upcoming monetary policy decisions in Canada, the Euro Area, and Japan.
The US dollar index held around 102.4 on Wednesday after advancing for three consecutive sessions, supported by investor caution ahead of the Federal Reserve’s upcoming policy decision. The central bank is widely expected to keep interest rates unchanged, although traders will look for clues about the possibility of a rate hike in December. On the corporate front, Alphabet and Microsoft are set to release earnings after the market closes on Wednesday, with investors assessing their results for insights into AI-related demand, which has contributed to US economic growth.
Meanwhile, the dollar gained more than 1% against the kiwi after the Reserve Bank of New Zealand unexpectedly kept its cash rate unchanged, defying expectations for a 25-basis-point increase. Investors will also monitor upcoming monetary policy decisions in Canada, the Euro Area, and Japan.