US Dollar Moves Higher Awaiting FOMC Rate Statement
The American dollar stayed stable and traded near 3-week high against Japanese yen in anticipation of results of the Fed’s meeting. The dollar index gained 0.06% to 93.90. The greenback started its upward moves on Tuesday after the meeting between US President Donald Trump and North Korean leader Kim Jong Un.
The dollar continued to increase against most Asian currencies. The US dollar increased by 0.28% against the Japanese yen to 110.68 (the highest level since May 23). The USD/CNY pair rose to CNY6.4055. The AUD/USD pair grew by 0.08% to 1.3214, as the Australian dollar is on the defensive ahead of Reserve Bank of Australia Governor Philip Lowe's speech today at an Australian Industry Group event in Melbourne.
The Fed will finish its two-day political meeting later today, which is expected to raise the interest rate for the second time this year. The focus of the market is on whether the Fed will raise the rate four times in 2018, rather than three times, as indicated earlier, as the world's largest economy is steadily expanding.