U.S. Dollar Edges Higher Before Fed Decision

The dollar drifted higher on Tuesday, trading in narrow ranges, as investors continued to adjust positions ahead of this week’s key decision on bond-buying by the U.S. Federal Reserve.

The U.S. currency ended last week slightly lower against a basket of major currencies and investors are buying back the greenback this week to square up positions, analysts said.

As the Fed begins its two-day policy-meeting on Tuesday, market participants generally expect no major policy changes, though the U.S. central bank could begin to lay the groundwork for a reduction in its economic stimulus that could occur in the first quarter of the year.

CNBC

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.