Forex - Dollar bounces off multi-month lows, Fed decision ahead
Investing.com
Published Feb 01, 2017 05:26AM ET
Dollar regains some ground as investors eye Fed decision
Investing.com - The dollar bounced off nearly three-month lows against other major currencies on Wednesday, as investors turned their attention to the Federal Reserve’s policy decision due later in the day.
EUR/USD slipped 0.12% to 1.0785, off Tuesday’s seven-week highs of 1.0814.
The greenback had tumbled on Tuesday, after Donald Trump’s top trade adviser accused Germany of currency exploitation, saying it is using a “grossly undervalued” euro to exploit the U.S. and its trading partners.
In separate remarks, President Trump criticized Japan and China, saying they devalued their currencies to the disadvantage of the U.S.
The remarks indicated that the dollar exchange rate could have a prominent role to play in Trump's 'America First' agenda.
The single currency showed little reaction to a report on Friday showing that German manufacturing growth accelerated to its fastest pace in three years in January.
Elsewhere, GBP/USD added 0.17% to trade at 1.2602.
Earlier Wednesday, market research group Markit said its U.K. manufacturing purchasing managers’ index slipped to 55.9 last month from a reading of 56.1 in December, in line with expectations.
USD/JPY climbed 0.56% to 113.42, after hitting a two-month low of 112.04 on Tuesday, while USD/CHF edged up 0.13% to trade at 0.9906.
The Australian dollar was steady, with AUD/USD at 0.7586, while NZD/USD retreated 0.48% to 0.7276.
Meanwhile, USD/CAD gained 0.34% to trade at 1.3074.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.16% at 99.69, off the previous session’s nearly three-month low of 99.40.
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Written By: Investing.com
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