U.S. Dollar Steadies versus Euro on Fed Meeting Outcome

In Tokyo trading, the U.S. Dollar approached a multi-month high versus the single currency Euro in advance of the Federal Reserve statement which will be issued at the conclusion of their policy meeting later today. Investors are hoping the statement will provide clues as to when the administration will start withdrawing its current loose monetary policy. Speculation abounds that the improved economic outlook for the United States will compel the Federal Reserve to make changes to their policy sooner rather than later. Recently, Ben Bernanke, the Chairman of the Federal Reserve Bank, in a response to a query made by Republic Senator Jim Cummings of Kentucky, stated that the U.S. economy was not operating to its fullest potential, thus the risk of inflation was unlikely.
As reported at 2:42 pm (JST) in Tokyo, the U.S. Dollar traded at $1.4530, following a nearly 1% gain in yesterday’s trading session to touch on $1.4503, the highest trade in nearly 2½ months. The Euro was under pressure yesterday on continuing investor concerns over central bank policies in the Euro zone, and recent data suggests that regional growth remains weak. Later today, Norway and Sweden’s central banks will public announce any changes to their currency monetary policy.
This topic source: dailyforex.com