The dollar weakened against the euro and a host of resource-linked currencies Wednesday as investors waited to scrutinize an updated policy statement from the Federal Reserve.
The overall market mood was “tentative” as oil prices consolidated above $30 a barrel while moves in both global equities and Treasurys were muted, market strategists from Scotiabank noted.
One dollar bought ¥118.42, compared with ¥118.43 late Tuesday in New York. The euro was at $1.0897, up from $1.0864 Tuesday.
The ICE U.S. Dollar index , a measure of the dollar’s strength against a basket of six currencies, was down 0.6% at 98.7860.
The relaxed trading environment has helped investors regain their appetite for risk, which is draining support from the dollar, analysts said.
Meanwhile, investors were hesitant to buy yen ahead of the Bank of Japan meeting later this week, said Josh O’Byrne, a G-10 currency strategist at Citigroup.
“Cross-yen investors are feeling better about risk. People are aware of BOJ this week so they’re less inclined to be buyers of yen,” O’Byrne said.
The Canadian and Australian dollars , as well as the Mexican peso , were all outperforming the dollar as hope for an oil rebound rises.
via MarketWatch
Content 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 Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at info@marketpulse.com. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.