Yahoo Finance Dollar Slips Lower Vs. Rivals in Cautious Trade
Investing.com - The dollar remained little changed against other major currencies on Wednesday, as investors remained cautious ahead of the Federal Reserve's policy decision due later in the day.
The Fed is widely expected to raise interest rates at its two-day policy meeting that will end on Wednesday and is currently seen tightening two to three times next year, but concerns over tepid inflation could alter the outlook for 2018.
Sentiment on the greenback was also vulnerable after a Democrat candidate won a a U.S. Senate seat in Alabama, reducing the Republican camp's already narrow Senate majority.
The reduced Senate majority could make it more difficult for President Donald Trump to implement tax reform plans and other economic policies.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.10% at 93.98 by 05:15 a.m. ET (09:15 GMT).
The Bank of England and the European Central Bank will also meet this week and are expected to hold rates steady.
The euro was fractionally higher, with EUR/USD up 0.08% at 1.1751, while GBP/USD rose 0.23% to 1.3349 after data showed that the UK unemployment rate was unchanged at a 42-year low in October, missing expectations, while wage inflation increased.
Elsewhere, the yen was higher, with USD/JPY down 0.12% at 113.40, while USD/CHF held steady at 0.9918.
The Australian dollar was steady, with AUD/USD at 0.7559, while NZD/USD eased up 0.09% to 0.69390.
Meanwhile, USD/CAD was almost unchanged at 1.2872.
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