Investors Await Fed Meeting, Dollar Edges Up

The dollar moved up on Wednesday as markets looked towards the meeting of global central bankers in Wyoming and a speech by Fed Chair Janet Yellen on Friday for clues on whether the Federal Reserve is poised to hike interest rates again. The central banks will gather in the mountain resort of Jackson Hole later this week.

Another Hike Possible

A rate hike seems possible by many analysts with recent hawkish comments coming from from Fed Vice Chairman Stanley Fischer and New York Fed President William Dudley raising expectations that Yellen might take a less cautious tone. Minutes from the Fed's July 26-27 policy meeting showed officials were divided over whether to raise rates soon, with some insisting that more solid economic data were needed before any tightening.

According to Mitsuo Imaizumi, chief currency strategist at Daiwa Securities, "The number two and number three officials have spoken. Will what she (Yellen) says be different?"

Data released on Tuesday reported that new U.S. single-family home sales unexpectedly rose in July, reaching their highest level in nearly nine years, brightening the housing market outlook.

The dollar inched 0.2 percent higher to 100.45 yen nudging below 100 yen overnight to 99.925. The dollar index, which tracks the U.S. unit against a basket of six major rivals, was up 0.1 percent at 94.650.

The euro was down 0.1 percent against the greenback at $1.1294, creeping 0.1 percent higher against the yen to 113.43 and the Pound slipped 0.2 percent to $1.3172 after touching a three-week high of $1.3210 overnight after manufacturing exports data suggested that Britain's economy is holding up surprisingly well in the aftermath of its vote to exit the European Union.

Cina Coren
Cina Coren is a former Wall Street broker and financial advisor. She holds a Master's degree in Communications and spent many years writing for international news outlets and journalistic publications. Today, Cina spends most of her time writing internet articles and blogs, and reading various newspapers to stay on top of the news.