The dollar fell versus the euro but rose against the yen on Wednesday as dealers awaited the conclusion of a US Federal Reserve monetary policy meeting and American economic growth data. In London morning trade, the euro advanced to 1.3221 dollars from 1.3147 dollars late on Tuesday in New York. Against the Japanese currency, the dollar climbed to 96.77 yen from 96.43 yen late Tuesday. Investors were awaiting Wednesday’s outcome of a two-day meeting at the Fed where monetary policymakers were expected to keep boosting the supply of cheap credit to the US economy since slashing the base interest rate to near zero. Citi analyst Todd Elmer said he “expects no major innovations or policy adjustments” and for market focus to concentrate on what is contained in the US central bank’s statement. Elmer said there was an “outside chance that the Fed may go beyond its general commitment to keeping rates low for an extended period of time and set a specific target date, along the lines of recent statements by the Bank of Canada.”
-AFP
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