Dollar Holds Near Highs in Advance of Fed

The dollar held near a four-month high on Wednesday as investors waited for news from the Federal Reserve’s two-day policy meeting which will be ending later today. The Fed is largely expected to hold interest rates steady while providing hints about when the next interest rate hike will be coming. The dollar was trading at 109.76 against the yen, slightly lower than yesterday but still clinging near four-month peaks. The dollar gained slightly against the euro, trading at $1.1993. Still, the euro gained 16 percent against the greenback from Q1 2017 until the end of Q1 2018. The dollar index was up 0.70 percent to 92.46 .DXY, after hitting a high of 92.570 .DXY, its highest in nearly four months.

European markets are poised for a higher open on Wednesday as investor optimism has increased after a positive day on Wall Street yesterday and strong earnings reports expected out later today. Asian stocks were mixed in the early part of the trading session, with most indexes trading lower. The ASX 200 was up 0.49 percent as of 1:29 p.m. HK/SIN, bucking the trend to the upside. The Nikkei 225 was down 0.25 percent, weighed by a lag in the automotive industry, though losses were restrained by the weaker yen which buoyed export stocks. Technology firms also traded broadly higher after a solid day for Apple yesterday in which March quarter results surpassed Wall Street forecasts. South Korea’s Kospi was down 0.33 percent and the Shanghai Composite was 0.41 percent lower.

Sara Patterson has a Master’s Degree in political science and enjoys analyzing both current events and the international markets to get a fuller perspective of the currency market. Before turning to financial writing, she taught English writing skills to high-school age students. Sara’s work has been published on various financial and Forex blogs.