U.S. Dollar Higher Before Fed

The dollar held a gain from yesterday against the yen on easing haven bids and speculation the Federal Reserve will stick to its stance suggesting an interest-rate increase this year.

The euro remained stronger after rallying from an 11-year low yesterday amid speculation the victorious Syriza party in Greek elections will pursue its anti-austerity agenda without forcing an exit from the currency bloc. The single currency extended an advance against the yen after rising the most in two months yesterday. Australia’s currency held near the weakest in 5 1/2 years after a private gauge of business confidence stayed near the lowest since July.

“The U.S. dollar remains supported, and that will continue for the foreseeable future,” said Robert Rennie, head of currency and commodity strategy in Sydney at Westpac Banking Corp. “That’s being driven by other central banks needing to be much more aggressive.”

Bloomberg

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.