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Dollar broadly higher as markets turn to Fed meeting

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Investing.com -

Investing.com - The dollar was broadly higher against the other major currencies on Monday, as markets turned their attention to the Federal Reserve's policy meeting this week amid mounting expectations for a rate hike.

USD/JPY eased up 0.07% to 121.07.

Most investors expect the Fed to raise interest rates for the first time since June 2006 at its upcoming meeting on December 15-16.

Higher interest rates would make the U.S. dollar more attractive to yield-seeking investors.

EUR/USD slid 0.25% to 1.0965.

Data earlier showed that euro zone industrial production rose 0.6% in October, beating expectations for a 0.3% gain, after a 0.3% fall the previous month.

Elsewhere, the dollar was higher against the pound, with GBP/USD down 0.27% at 1.5176 and with USD/CHF adding 0.17% to 0.9843.

The Australian and New Zealand dollars were stronger, with AUD/USD up 0.37% at 0.7215 and with NZD/USD gaining 0.28% to 0.6732.

Also Monday, China's yuan opened at fresh four-and-a-half year lows after the People's Bank of China set its yuan midpoint rate at the lowest level since 2011.

The move came after the PBOC indicated Friday that it may ease its loose peg to the dollar and allow the yuan track a broad basket of currencies of China's trading partners.

Such a move would reduce China's demand for dollars.

Meanwhile, USD/CAD slid 0.29% to trade at 1.3716, still close to Friday's 11-1/2 year highs of 1.3759.

The U.S. dollar index, which measures the greenback's strength against a trade-weighted basket of six major currencies, was up 0.25% at 97.85.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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