Forex- U.S. Dollar Falls Ahead of Fed Minutes


© Reuters. The dollar was lower on Wednesday.

Investing.com – The U.S. dollar slumped to a day low against a basket of other currencies on Wednesday as investors looked ahead to the Fed meeting minutes.

The Federal Reserve is expected to release its minutes from its latest policy meeting at 2:00 PM ET (18:00 GMT). Investors will be watching closely for clues of the number of future interest rate hikes.

The , which measures the greenback’s strength against a trade-weighted basket of six major currencies, fell 0.29% to 89.06 as of 10:54 AM ET (14:54 GMT).

The dollar fell sharply following a mixed inflation report for March, which showed a yearly increase in inflation but a negative increase for the month.

The U.S. consumer price index fell 0.1% in March the Labor Department reported Wednesday, in what was the first and biggest drop in ten months. However annual inflation rose by while underlying inflation rose 2.1% year-on-year.

Geopolitical tensions between the U.S. and Russia also weighed on the dollar. U.S. President Donald Trump said he would respond this week to a suspected chemical weapons attack in Syria. On Twitter, Trump told Russia to “Get ready… because they (missiles) will be coming…”

The dollar fell against the safe haven yen, with falling 0.44% to trade at 106.72. In times of uncertainty, investors tend to invest in the Japanese yen, which is considered a safe asset during periods of risk aversion.

The euro pushed higher, with increasing 0.30% to 1.2391. Meanwhile was up 0.28% to 1.4214.

Elsewhere, the Australian dollar was slightly higher, with rising 0.12% to 0.7770, while jumped 0.22% to 0.7372.

In Canada, the loonie rose, with falling 0.43% to 1.2544.

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