The growth of the dollar contribute to expectations that the fed will leave the rate at its lowest level and will postpone the tightening of monetary policy in 2016.
MOSCOW, 28 Oct. The dollar during trading environment shows a slight positive trend in relation to most world currencies after falling the previous day, in anticipation of the fed’s decision on monetary policy, according to AFP.
As of 08.20 GMT the dollar index (the dollar against a basket of currencies of six major U.S. trading partners) was up 0.06% to point of 96.96. The Euro-dollar exchange rate was down to 1.1036 with 1,1049 dollar dollar per Euro on Tuesday. The dollar against the yen fell to 120,44 yen per dollar with 121,45 yen per dollar at the previous closing.
The next fed meeting takes place on October 27-28. Analysts believe that the regulator will keep the base rate at its lowest level and will postpone the tightening of monetary policy in 2016.
In conditions of some uncertainty investors prefer safer assets like the Japanese yen. “We are seeing the classic treatment from risky assets”, — quotes Agency MarketWatch words of the senior foreign exchange analyst at Daiwa Securities of Ishizuki Yukio (Yukio Ishizuki).
In addition, on Wednesday investors continue to react to ambiguous statistics of the United States. Thus, the volume of orders for durable goods in the country in September decreased by 1.2% compared with August, while analysts expected reduction of 1.5%.
Analyst firm the Conference Board said in turn that the consumer confidence index in the U.S. in October fell to 97.6 in September from a revised item index in a decrease of 102.6 points. Analysts forecasted that the indicator at the initial level of September at 103 points.