The US dollar is getting stronger against the euro, the yen and the pound sterling during trading on Tuesday.
Traders are awaiting the publication of the Federal Reserve System (Fed) meeting minutes from January 31 to February 1. The Federal Reserve Board decided to raise the rate by 25 basis points (bps) – to 4.5-4.75% a year.
Experts expect that the protocol may confirm the Fed’s intention to continue raising the rate longer than it was planned before, Trading Economics said.
The latest statistical data on the U.S. economy has “called into question” arguments that the Fed may soon halt its rate hike cycle or move to lower rates altogether, notes Chuck Camello, president and chief executive officer of Essex Financial Services.
“I think the market is finally coming to the realization that U.S. rates will be higher than expected, and longer than expected,” Bloomberg quoted the expert as saying.
Calculated by ICE index showing dollar dynamics against six currencies (euro, Swiss franc, yen, Canadian dollar, pound sterling and Swedish krona) added 0.13% during Tuesday’s trading, broader WSJ Dollar Index added 0.15%.
The euro/dollar pair is trading at $1.0672 as of 8:10 a.m., up from $1.0687 at Monday’s market close.
The pound fell to $1.2026 from $1.2041 the day before.
The value of the American currency against the yen rose to 134.39 yen against 134.26 yen in previous trading.
