Forex- Dollar Rallies as Investors Look to FOMC Meeting

Forex- Dollar Rallies as Investors Look to FOMC Meeting

© Reuters.  The U.S. dollar rallied on Tuesday. © Reuters. The U.S. dollar rallied on Tuesday.

Investing.com – The dollar rallied against a basket of the other major currencies on Tuesday as the Federal Open Market Committee begins its two-day meeting where it is expected to raise interest rates.

The , which measures the greenback’s strength against a trade-weighted basket of six major currencies, rose 0.22% to 94.15 by 11:22 AM ET (16:22 GMT), after an earlier low of 93.76. The greenback was nearing a two-and-a-half week high.

The Fed is widely expected to raise interest rates for the third time this year at its meeting that will end on Wednesday and is currently seen tightening two to three times next year.

Softening Inflation has raised concerns over the outlook for further policy tightening in 2018, but data on Tuesday showed that U.S. jumped 3.1% from a year earlier in November.

The dollar rose to an almost one-month high against the yen, with rising 0.11% to 113.68.

The euro was lower, with down 0.37% to 1.1725.

Sterling was also down, with falling 0.16% to 1.3319 after rising to the day’s high of 1.3380 earlier after data showing UK inflation unexpectedly nearly hit a six-year high in November.

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