By: DailyForex.com
The US Dollar Index remained near to a multi-month low versus a weighted basket of peers as traders await the outcome of today’s Federal Reserve Bank policy meeting. The Dollar Index, used by traders to assess the relative strength of the Dollar against peers, has now lost more than 3% of its value over the past fortnight. Earlier today, the Index hit 95.663 .DXY, a level not seen since last October, several months before the Fed’s interest rate hike. In pair trading, the US Dollar is also under some pressure.
As reported at 10:53 am (GMT) in London, the US Dollar Index was trading at 96.26 .DXY. The USD/JPY pair is trading at 115.0550 Yen, down 0.05%. The GBP/USD pair is higher by about 0.27% and is trading at $1.4509; the pair has ranged from $1.443 to $1.4512 in today’s trading session. The AUD/USD was higher at $0.7101, a gain of 0.31% for the Aussie Dollar.
Yellen Holds Key to Dollar Direction
Last year, Janet Yellen, the head of the Fed, had assured markets that several interest rate hikes would be forthcoming in 2016. However, the global economic circumstances have deteriorated to the point where uncertainty reigns. The demand for the greenback has ebbed amid a clamor for safe haven currencies like the Swiss Franc and Japanese Yen. Investors are hoping that after today they will be able to gauge the possible direction of the US Dollar.