Dollar falls, market mood positive ahead of Fed meeting

The dollar fell on Wednesday as re-opening economies lifted the market mood ahead of central bank meetings.

The risk-sensitive Australian dollar gained 0.4%, at $0.6517, nearing its sixth consecutive week of gains. The New Zealand dollar climbed 0.6%, at $0.6093.

The U.S. Federal Reserve is set to hold a meeting on Wednesday and investors are awaiting the central bank’s announcement on its future policy path. This capped further gains in the forex market.

The dollar index steadied at 99.837. The dollar stood at 106.70 against the Japanese yen, nearing a six-week low.

The pound traded at $1.2441 and the euro $1.0835.

U.S. consumer confidence plunged to a six-year low, while markets await the first-quarter GDP report expected to contract by 4%.

The Australian dollar has soared in the past week, gaining 18% from hitting a 17-year low in March.

The National Australia Bank revised its forecast for the Aussie dollar to $0.6750, but anticipates it to decline to $0.6200 at the end of this quarter.