The dollar rose slightly on Tuesday, with markets having little appetite for risk ahead of the decision by the US Federal Reserve (Fed).
Around 09:40 GMT (11:40 a.m. in Paris), the dollar was trembling against the euro which lost 0.07% to 1.0684 dollars, while the pound also crumbled against the greenback (-0.03% to 1 .2379 dollars).
“Investors will likely remain cautious ahead of a week filled with key data and policy decisions from major central banks,” explained Lukman Otunuga of FXTM.
The British currency remained particularly vulnerable while inflation figures are expected in August in the United Kingdom, before the decisions of the Fed and the Bank of England on rates. Most analysts expect the British central bank to raise interest rates by 25 basis points, an increase that could be the fifteenth in a row and the last.
As a result, “the dollar benefits from some support due to the tense atmosphere”, deduced the analyst at FXTM.
Its slight increase was also “supported by high yields on US Treasury bonds”, also noted Patrick Munnelly of Tickmill.
The euro fell after the announcement of the annual inflation rate of the euro zone, revised downwards for the month of August, to 5.2%, which reinforces among investors the feeling that the increase in the rate of the European Central Bank last week is the last of the current cycle.
For its part, the yen fell 0.06% to 147.71 dollars, remaining below the 148 dollar mark, while investors expected a continuation of the accommodative policy of the Bank of Japan, which is meeting this week.
This article is originally published on zonebourse.com