Yahoo Finance Forex- U.S. Dollar Struggles to Stay at Five-Month High
Investing.com - The dollar struggled to stay near a five-month high on Tuesday as investors look ahead to the Fed minutes.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.04% to 93.50 as of 11:21 AM ET (15:21 GMT).
The Federal Reserve releases the latest minutes from its monetary policy meeting on Wednesday. Investors will be looking closely for any sign of tightening monetary policy.
A recent increase in bond yields, along with positive economic data and rising inflation, has boosted expectations that the Federal Reserve will increase interest rates and tighten monetary policy.
The Fed raised rates in March and is expected to raise rates twice more, with some investors expecting a third hike.
Expectations of higher interest rates tend to boost the dollar by making the currency more attractive to yield-seeking investors.
Investors are also looking ahead to a speech from Fed chairman Jerome Powell who will participate in a panel discussion of "Financial Stability and Central Bank Transparency" at the Sveriges Riskbank Conference in Stockholm, Sweden on Friday.
The dollar rose against the safe haven yen, with USD/JPY increasing 0.01% to 111.06.
The euro was down amid political uncertainty in Italy, with EUR/USD falling 0.10% to 1.1779.
Sterling inched up slightly after testimony from Bank of England governor Mark Carney, who repeated comments from a press conference earlier this month on the banks decision to not increase rates. GBP/USD was up 0.01% to 1.3426.
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