The US dollar traded nearly a two-month low versus a basket of major currencies Wednesday, as the market anticipated the Federal Reserve might take on a more dovish stance after its two-day policy review.
Before the Fed’s statement, traders will also monitor the US economy in the first quarter.
The statement will recognize the weakness of the 1st quarter data but attempt and look into it, and “there will be no change to the characterisation of inflation prospects,” said Callum Henderson, Global Head of FX Research at Standard Chartered Bank.
The greenback last stood close to $1.0968 per euro. Against the Japanese yen, the dollar steadied at ¥118.87.
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