© Reuters. Dollar higher before Trump speech, Fed
Investing.com – The dollar moved higher against a currency basket on Tuesday, buoyed by higher U.S. bond yields as investors turned their attention to U.S. President Donald Trump’s State of the Union speech and a Federal Reserve policy meeting.
The , which measures the greenback’s strength against a basket of six major currencies, was up 0.29% to 89.43 by 03.17 AM ET (08:17 AM GMT), having pulled up from last week’s low of 88.25, its weakest level since December 2014.
U.S. Treasury yields climbed to fresh multi-year highs on Tuesday, after comments from a European Central Bank official added to expectations for major central banks to begin scaling back monetary stimulus.
Market participants were awaiting , due later on Tuesday, for anything further he might have to say about the dollar. The president was also expected to outline his much-anticipated infrastructure plan in the speech.
The dollar slumped last week after U.S. Treasury Secretary Steven Mnuchin gave a tacit endorsement of a weak currency. Trump later tried to row back from those comments, saying he ultimately wants the dollar to be strong.
The focus was also on the Fed, which was to begin its two-day policy meeting later Tuesday.
The dollar was higher against the euro, with slipping 0.32% to 1.2342, down from the more than three year peaks of 1.2537 reached last week.
Against the yen, the dollar was lower, with losing 0.18% to trade at 108.75, falling back in the direction of Friday’s four-and-a-half month low of 108.27.
Sterling was lower, with down 0.59% to 1.3991 as the recovery in the dollar and renewed concerns over Brexit weighed, after leaked government papers showed that under all three likely Brexit scenarios.
The Australian and New Zealand dollars were lower against their U.S. counterpart, with shedding 0.52% to 0.8049 and down 0.55% to 0.7282.
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