Sept 20, 2017
The dollar edged towards 2-1/2-year lows hit earlier this month on Wednesday, as investors waited to see whether U.S. ratesetters would signal tighter policy or hold off because of tepid inflation data.
The U.S. Federal Reserve concludes a two-day policy meeting on Wednesday, and investors are looking for clues on a potential December rate hike and cuts in a massive balance sheet run up through years of post-crisis money-printing.
But caught between a lull in U.S. inflation and a strengthening global economy, the market is uncertain whether the Fed will signal its third interest rate hike of the year or back off until prices rise more briskly.
“Fed members have become less hawkish of late, and that has started to weigh on the dollar,” said OANDA analyst Craig Erlam.
This article was posted: Wednesday, September 20, 2017 at 8:53 am