Dollar holds gains ahead of Fed policy signal, RBNZ decision
TLT•The dollar held at a two-week high ahead of central bank decisions, with markets expecting the Fed to leave rates unchanged and watching for a signal on December. The dollar index rose 0.3% to 102.40 on Tuesday, while the U.S. 10-year Treasury yield was 4.9967%.
1. Markets await decisions
The dollar held steady at a two-week high early Wednesday as traders awaited the Fed’s policy decision and an expected interest-rate hike from the Reserve Bank of New Zealand. Fed funds futures implied a 91% probability that the Federal Open Market Committee would leave rates unchanged.
2. Currency moves
The euro was flat at $1.1129, the pound was unchanged at $1.3307, and the dollar rose 0.1% to 158.03 yen. The New Zealand dollar was level at $0.5682, while the Australian dollar rose 0.1% to $0.7031 ahead of September CPI data.
