The Fed is widely expected to keep interest rates unchanged at its two-day meeting that ends on Wednesday. The focus will be on any hints on whether it may raise rates again this year, and when it will begin paring its bond holdings.
Given the recent weakness in U.S. inflation data, the market is guessing that the Fed’s tone will be dovish and this seems to be weighing on the dollar, said Stephen Innes, head of trading in Asia-Pacific for OANDA in Singapore.
“Without the Fed’s support right now, I think the dollar is just going to wobble,” Innes said, referring to the greenback’s near-term outlook.
Daily Mail via Reuters