Greenback comes off recent peaks ahead of expected Fed rate lift

fedreserveOn Wednesday, the evergreen buck wobbled in rather a narrow range during Asia trade, as market participants waited anxiously to see what clues the major US financial institution would soon disclose on its monetary policy outlook.

With the futures market pricing in more than a 90% likelihood that it would increase interest rates, traders’ key focus turned to what the Fed’s statement on Wednesday will tell about the pace of interest lifts this year.

Against its Japanese rival the US dollar soared 0.1%, hitting 114.81, staying shy of the previous week’s high of 115.51, which was its highest value since January 19 as hopes built for the rate hike.

Overnight American inflation data cemented rate lift hopes. The previous month US producer prices inched up more than expected, thus marking the most robust year-on-year revenue in almost five years.

On Wednesday, the BOJ also started a two-day monetary policy gathering. The bank is expected to hold its monetary policy steady.

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