The dollar was on a firm footing in early Asian trading on Wednesday, with the dollar index not far from a six-week peak after U.S. data reinforced expectations that the U.S. Federal Reserve will begin reducing its stimulus soon.
However, caution ahead of this week’s central bank meetings as well as the possibility of a U.S. military strike on Syria were likely to keep major currency pairs in recent ranges, market participants said.
The dollar index, which tracks the unit’s performance against a basket of six major currencies, rose to 82.516 on Tuesday, its highest since July 22. It last traded at 82.363, up slightly on the day.
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.