Dollar remains weak ahead of Fed announcement

Published: 18 Sep at 9 AM Tags: Euro, Dollar,

The US dollar is continuing to hover around its lowest level in a month against a number of other major currencies. The greenback remains under pressure ahead of a policy announcement by the Federal Reserve. Most investors expect the central bank to confirm that any tapering of its easy money programme will be modest.

The dollar is little changed against the euro, which is currently worth $1.3354. The US currency has managed to gain 0.1 per cent against its Japanese rival to end at 99.24 yen.

The single currency is likely to experience a boost after data released by Germany revealed that investor and analyst sentiment has risen higher than expected so far this month. Earlier this week the euro hit a two-week high of $1.3385.

Most analysts are expecting the Fed to announce it will be cutting its programme of purchasing $85 billion in bonds every month by around $10 billion. The central bank has appeared less aggressive about cutting stimulus since disappointing US job figures were announced on 6 September.

However, any reduction in the US stimulus policy could see the dollar strengthen against the yen as the Bank of Japan could easily introduce further monetary easing in an effort to boost the Japanese economy.