U.S. Dollar Edges Higher Before Fed Meeting

The dollar edged up against a basket of currencies in early trade on Monday, drawing mild support as geopolitical worries hung over the markets, but was by potentially decisive events such as the Federal Reserve meeting midweek.

The dollar index .DXY, a measure of the greenback’s strength versus key currencies, edged up 0.1 percent.  The index had gained about 0.3 percent the previous week, helped by factors including higher U.S. Treasury yields and its status as a safe haven as conflict in Iraq escalated.

In focus was whether the dollar can gain further should the Federal Reserve provide new hints on the timing of interest rate hikes when it concludes its two-day policy meeting on Wednesday.


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.