Forex — Dollar inches Higher as Fed decision Eyed, Kiwi Surges

© Reuters. Dollar inches higher as Fed decision eyed, kiwi surges — The dollar edged higher on Wednesday as investors is the Federal Reserve ‘s policy» statement, for fresh indications on the future of tightening is expected, while the new Zealand dollar rose on strong domestic jobs data.

The US dollar index, the GMT, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was at 94.50 03:42 PM ET (AT 07:42), holding below Friday, the three-month peak of 95.06.

To leave the Fed expected interest rates unchanged at the conclusion of its two-day monetary policy meeting later on Wednesday, but investors were waiting for hints that rising interest rates in the next month, as expected, and the timing of interest rate hikes in 2018.

Traders were also President of the Donald Trump-expected announcement about the next head of the US Central Bank. Recent reports have indicated, to designate that Trump is likely to be, Fed Governor Jerome Powell, who is regarded as more peaceful than other candidates.

The demand for the dollar underpinned, it was indicated to U.S. economic reports on Tuesday that the economy is gaining momentum ahead of labour market data on Friday.

Consumer confidence jumped to an almost 17-year high last month and another report showed that wage growth accelerated in the third quarter.

The dollar was higher against the yen, with USD/JPY up 0.22% to 113.90.

The new Zealand dollar rallied, with NZD/USD 1.1% jump on 0.6922 according to the data show that the country the unemployment rate fell to a nine-year low of 4.6%.

The kiwi came under pressure in recent weeks amid fears that a slowdown in the rate of foreign investment could meet in the in-depth work of the coalition’s growth and causes it to be to keep Central Bank rates to a record low for longer.

The euro was little changed with GBP/USD at 1.1646, not far from three-month low of 1.1573 late hit last week, after the European Central Bank said it has renewed its bond purchases in September 2018.

Was Sterling trading near two-week highs, with GBP/USD at 1.3290 expectations that the Bank of England interest rates for the first time in almost a decade on Thursday.

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