On Wednesday, the evergreen buck took a breather, as market participants looked to whether the Federal Reserve will indicate any acceleration in the pace of future rate lifts to handle an expected ramp-up in fiscal spending under President-elect Donald Trump.
In its policy gathering ending later in the day, the major US bank is all but certain to increase its interest rate objective by 0.25% point to 0.50-0.75%, that would be just the second rate lift since the financial crisis in 2007-08, reacting to the tightening last December.
The dollar’s index against a basket of six key currencies was steady, sticking to 101.05 during early Asian trade, having fallen from 101.78 hit early on Monday.
The common currency little changed, showing $1.0628, off Monday’s one-week minimum of $1.0525.
Against the Japanese yen, the major American currency traded at 115.20 yen, thus backing off a little from Monday’s 10-month high of 116.12 yen.
