FOREX-Dollar rises vs major currencies ahead of Fed meeting

  • Reuters
  • Forex News
FOREX-Dollar rises vs major currencies ahead of Fed meeting
Credit: © Reuters.

* Graphic: World FX rates https://tmsnrt.rs/2RBWI5E

* Focus on Fed meeting ending Wednesday

* German Ifo data short of expectations

* Bitcoin reclaims $50,000 bar (Adds new comment, updates prices)

By Gertrude Chavez-Dreyfuss

NEW YORK, April 26 (Reuters) - The dollar rose from an eight-week low against the euro on Monday, also gaining against major currencies such as the yen and Swiss franc, with investors consolidating positions ahead of the Federal Reserve's monetary policy meeting this week.

The dollar has fallen nearly 3% since late March as U.S. Treasury yields, which had risen this year and supported the greenback, traded in narrow ranges.

"Dollar bears are treading a bit carefully ahead of the Fed decision," said Joe Manimbo, senior market analyst at Western Union Business Solutions. "There is a risk that the Fed this week could signal scope for tapering policy later this year."

The Federal Open Market Committee ends its two-day meeting on Wednesday, and while no major policy changes are expected, investors will pay close attention to comments from Chairman Jerome Powell.

Powell is likely to face questions over whether an improving labor market and rising coronavirus vaccinations warrant a withdrawal of monetary easing. Most analysts though expect him to say such talk is premature, which could put downward pressure on Treasury yields and the dollar.

Edward Moya, senior market analyst at OANDA, said while the Fed could stay the course this week, it could be a different story at the June meeting given the optimism surrounding robust COVID-19 vaccine distribution.

"That will complicate the outlook for the dollar," Moya noted, adding that initially people were expecting the Fed to keep its easy monetary policy stance for some time. But the success in U.S. distribution of vaccines, plus the improving economic outlook have prompted investors to believe that the Fed may taper its asset purchases sooner rather than later.

"A lot of that could derail the dollar view that its day of reckoning is here," Moya said.

In afternoon trading, the euro fell 0.1% against the dollar to $1.2091 EUR=EBS after disappointing euro zone data.

German business morale improved by less than expected in April as a third wave of COVID-19 infections and problems with supply of components in the industrial sector seemed to slow the recovery in Europe's largest economy. however, kept focusing on the general direction of travel of the economy, seen firmly on its way out of the COVID-19 crisis.

The dollar index =USD was down slightly at 90.828, partly recovering from an eight-week low.

Against the yen, the dollar was up 0.2% at 108.11 JPY=EBS .

The dollar also gained 0.1% versus the Swiss franc to 0.9141 franc CHF=EBS .

In emerging markets, the Turkish lira TRYTOM=D3 weakened to as much as 8.48 versus the dollar, close to its record low of 8.58 reached in early November. The dollar though was last down 1.6% at 8.2850.

The lira is among the worst performers in emerging markets this year due to worsening relations with the United States and worries about central bank policy.

In the cryptocurrency market, bitcoin BTC=BTSP reclaimed the $50,000 mark, jumping 10% and on course to snap five straight days of losses exacerbated by U.S. President Joe Biden's plan to raise capital gains taxes for wealthy investors. was last up 10.5% at $54,288.

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Currency bid prices at 2:49PM (1849 GMT) Description

RIC

Last

U.S. Close Pct Change

YTD Pct

High Bid

Low Bid

Previous

Change

Session

Dollar index

=USD

90.8180

90.8920

-0.07%

0.930%

+90.9890

+90.6790 Euro/Dollar

EUR=EBS

$1.2090

$1.2097

-0.05%

-1.05%

+$1.2117

+$1.2061 Dollar/Yen

JPY=EBS

108.1150

107.8600

+0.25%

+4.65%

+108.1950 +107.6500 Euro/Yen

EURJPY=

130.71

130.46

+0.19%

+2.99%

+130.7300 +130.2200 Dollar/Swiss

CHF=EBS

0.9143

0.9137

+0.08%

+3.36%

+0.9165

+0.9122 Sterling/Dollar GBP=D3

$1.3898

$1.3881

+0.13%

+1.73%

+$1.3929

+$1.3867 Dollar/Canadian CAD=D3

1.2407

1.2475

-0.53%

-2.55%

+1.2490

+1.2384 Aussie/Dollar

AUD=D3

$0.7802

$0.7746

+0.73%

+1.43%

+$0.7815

+$0.7735 Euro/Swiss

EURCHF=

1.1054

1.1052

+0.02%

+2.29%

+1.1071

+1.1043 Euro/Sterling

EURGBP=

0.8698

0.8715

-0.20%

-2.67%

+0.8719

+0.8683 NZ

NZD=D3

$0.7238

$0.7195

+0.65%

+0.84%

+$0.7243

+$0.7191 Dollar/Dollar

Dollar/Norway

NOK=D3

8.2815

8.2895

-0.05%

-3.51%

+8.3110

+8.2720 Euro/Norway

EURNOK=

10.0149

10.0500

-0.35%

-4.34%

+10.0516

+10.0069 Dollar/Sweden

SEK=

8.3781

8.3776

-0.14%

+2.22%

+8.4040

+8.3658 Euro/Sweden

EURSEK=

10.1285

10.1422

-0.14%

+0.00%

+10.1485

+10.1220

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https://tmsnrt.rs/2RBWI5E

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