Dollar firms as traders look to Fed for guidance

The dollar firmed against major peers on Wednesday as investors looked to the U.S. Federal Reserve’s policy meeting for hints on rate hikes and rising bond yields.

The dollar strengthened by 0.1% to 109.085 against the yen, lingering near nine-month highs reached this week. The euro was flat against the dollar after dropping in the last three days.

Fed policymakers are expecting to forecast the fastest U.S. economic growth in decades on vaccination rollouts and the massive $1.9 trillion stimulus package. 

The dollar index traded at 91.908 after climbing for three consecutive days on rising U.S. bond yields.

The euro stood at $1.1902, but is projected to test last week’s 3 ½-month low of $1.18355. The British pound fell 0.1% to $1.3886 in Asian trade. 

The Aussie, the kiwi, and the Canadian dollars slightly eased against the greenback on weak commodity prices.