U.S. Dollar Eases on Expectations for Dovish Fed

The U.S. dollar slipped against major currencies on Tuesday on expectations that the Federal Reserve would take a cautious tone on monetary policy, while a slide in oil prices pushed the Russian rouble to new lows and boosted the safe-haven yen.

Traders booked profits from the greenback’s recent gains on the view that the Fed would maintain a dovish stance on raising interest rates, partly in response to lower oil prices, at the end of a two-day meeting Wednesday.

Expectations that the Fed will keep the phrase “considerable time” to describe when it will hike interest rates hurt the dollar since rate increases are expected to boost the greenback by driving investment flows into the United States.

CNBC

Content 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 Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at info@marketpulse.com. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.