Dollar edges higher as focus turns to central bank meetings
TLT•The dollar index rose 0.2% to 102.22 as investors focused on policy decisions from the Fed, ECB and Bank of Japan. The euro fell 0.25% to $1.1144, while the dollar gained 0.15% against the yen to 157.73.
1. Dollar firms ahead of meetings
The dollar strengthened against major currencies as investors positioned ahead of central bank meetings for clues on the economic outlook and interest rates. The Fed was set to announce its decision Wednesday, followed by the ECB on Thursday and the Bank of Japan on Friday; all three were expected to hold rates steady.
2. Euro remains under pressure
The euro fell 0.25% to $1.1144 and was on track to be the worst-performing developed-market currency in October, down 1.65% against the dollar. High energy costs, volatility in French government bonds and concerns about France’s fiscal position weighed on the currency. The ECB’s quarterly Bank Lending Survey showed the impact of rate hikes becoming visible.
3. Other currencies mixed
The dollar rose 0.15% to 157.73 yen, while sterling weakened 0.16% to $1.3317. The New Zealand dollar gained 0.33% to $0.5699, and the Canadian dollar fell 0.14% to C$1.404 per dollar; the Reserve Bank of New Zealand and Bank of Canada were both expected to raise rates Wednesday.
