Dollar Steady Near One-Month High
The US dollar held steady near one-month highs in trading on Tuesday (July 28). Market participants are still pricing in the possibility of a Federal Reserve interest rate hike at this week's meeting, although falling oil prices have helped ease inflation concerns.
The US Dollar Index edged down 0.1% to 101.46, but maintained its strength against most Asian currencies. The USD/JPY pair held around 164 yen, reflecting continued pressure on the Japanese currency.
The market is pricing in a roughly 38% chance of the Fed raising interest rates by 25 basis points on Wednesday. Investors are also awaiting the release of US economic growth and core PCE inflation data for additional clues regarding the next direction of monetary policy.
The yen remains near its lowest level in decades ahead of the Bank of Japan's decision on Friday. The BOJ is expected to keep interest rates unchanged, but the market is awaiting signals regarding the likelihood of further tightening after verbal interventions have failed to halt the yen's decline.
Source: Newsmaker.id
