Dollar rises as markets eye central bank meetings
TLT•The dollar index rose 0.27% to 102.29 as investors focused on upcoming Federal Reserve, European Central Bank and Bank of Japan meetings. The euro fell 0.33% to $1.1136, while the dollar rose 0.24% against the yen to 157.90.
1. Dollar edges higher
The dollar edged higher against major currencies as investors positioned ahead of central bank meetings for clues on the economic outlook and interest rates. It had also stabilized after coming under pressure following a selloff in high-flying AI stocks the previous week.
2. Policy decisions ahead
The Federal Reserve was set to announce its policy decision on Wednesday, followed by the European Central Bank on Thursday and the Bank of Japan on Friday. All three were expected to keep rates on hold, with attention on policymakers’ guidance. The Reserve Bank of New Zealand and Bank of Canada were also due to announce decisions Wednesday, and both were expected to raise rates.
3. Euro and yen moves
The euro was down 0.33% against the dollar at $1.1136 and was on track to be the worst-performing developed-market currency in October, down 1.70%. The dollar rose 0.24% to 157.90 yen and sterling weakened 0.19% to $1.3317. Japan’s finance minister said the government stood ready to take decisive action in the currency market.
