TOKYO (Reuters) – The dollar held steady early in Asia on Friday, and was set ot show a weekly rise as investor focus turned to next week’s Federal Reserve meeting for cues on a possible interest rate cut in light of rising risks to trade and global growth.
The dollar index against a basket of six rivals was basically unchanged at 97.001, and on track for a near 0.5% gain this week. The index had touched an 11-week low of 96.459 last Friday.
Federal - Open - Market - Committee - FOMC
The Federal Open Market Committee’s (FOMC) two-day policy meeting is set to begin on Tuesday. With trade tensions rising, U.S. growth slowing and hiring in May declining, markets have priced in at least two rate cuts by the end of 2019.
There was only an 11.3% expectation on Thursday that U.S. interest rates will be at current levels in July of this year, compared to 74.1% a month ago, according to the CME Group’s FedWatch tool.
Ahead - FOMC - Meeting - People - Comments
“Ahead of the FOMC meeting, people are expecting dovish comments from the Fed, which is weighing on the dollar in general,” said Masafumi Yamamoto, chief currency strategist at Mizuho Securities.
“However, other currencies like euro and sterling are weak and their weakness is helping the strength of the dollar,” he said.
Investors - Attention - Friday
Investors’ attention on Friday will also be...
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