© Reuters. US dollar banknotes can be seen in front of the displayed stock graph in this illustration
Posted by Kevin Buckland
TOKYO (Reuters) – The US dollar has been holding small gains since the start of the week on Tuesday as caution was exercised in the currency markets ahead of major central bank meetings spearheaded by a two-day Federal Reserve meeting from Global Day.
The greenback was just below its highest level since June against the yen, consolidating a position in subdued trading around $ 1.19 per euro.
The Bank of Japan and the Bank of England will also meet this week.
was back at around $ 55,000 after falling from near $ 62,000 from its all-time high over the weekend.
The steady tone for the dollar came despite a decline in US benchmark yields from their highest levels in more than a year before the Fed meeting.
Policymakers are unlikely to deviate from monetary policy, despite an expected forecast of rapid economic growth in 2021 following an accelerated rollout of COVID-19 vaccines and a $ 1.9 trillion pandemic relief package for taxpayers and others.
Particular emphasis will be placed on comments on the rise in yields, which have risen due to faster growth in bets, and inflation will cause central bankers to move faster than they have so far signaled when the policy normalizes.
"The markets essentially mark the time before the FOMC meeting," which "keeps investors a little cautious," wrote National Australia Bank (OTC 🙂 foreign exchange strategist Rodrigo Catril in a customer announcement.
"A lot of emphasis is being placed on whether the new projections and scotcharts confirm the current surge in expectations for the Fed hike."
The benchmark, which hit 1.6420% late last week, was last at 1.6073%.
The dollar barely changed at 109.170 yen at the start of Tuesday's Asia session after rising to 109.365 overnight. The BOJ begins a two-day political meeting on Thursday with a full policy review.
The euro was largely unchanged at $ 1.19255 and has been below $ 1.20 since March 5th. The launch of vaccines in Europe has been hampered by the suspension of AstraZeneca (NASDAQ 🙂 PLC recordings in Germany, France and other countries due to concerns about possible serious side effects.
Bitcoin continued to fall to around $ 54,782 on Tuesday after rising to a record $ 61,781.83 on Saturday.
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