WASHINGTON (dpa-AFX) - The U.S. dollar firmed against its major rivals on Tuesday as traders looked ahead to the Federal Reserve's policy announcement tomorrow.
The central bank, which is currently purchasing $120 billion of bond per month, is widely expected to start scaling down their purchases. The bank is likely to hold rate at 0 - 0.25% range.
The dollar index climbed to 94.13, gaining nearly 0.3%.
Against the Euro, the dollar has strengthened to 1.1583, gaining from 1.1606. Eurozone manufacturing activity expanded at the slowest pace in eight months in October as supply chain issues interrupted production schedules and dampened orders, final survey results from IHS Markit showed.
The manufacturing Purchasing Managers' Index fell to 58.3 in October from 58.6 in September. The reading was also below the 'flash' 58.5.
The dollar is stronger against Pound Sterling, firming to 1.3616 from 1.3665. The Bank of England's meeting takes place on Thursday, with think-tanks divided on which way the rate decision would go.
The Yen up marginally at 113.95 a dollar, after having firmed up to 113.47 in the Asian session.
Against the Aussie, the dollar has climbed about 1.3% to 0.7429. Australia's central bank discontinued its government bond yield target and signaled that the rate hike is possible before 2024.
The board also voted to continue with the purchase of government securities at the rate of A$4 billion a week until at least mid February 2022.
The Swiss franc has slid to 0.9146 a dollar, from 0.9092. Data from the Federal Statistical Office showed Switzerland's consumer price inflation increased in October, with the index growing by 1.2% year-on-year in the month, following a 0.9% rise in September. Economists had expected a 1.1% rise.
The Loonie has weakened to 1.2406 from 1.2372 a dollar.
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