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.
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