Dollar pins hopes on Fed, Biden to end month-long slump
The dollar rose on Wednesday as traders focused on the Fed’s policy statement and a speech by President Joe Biden later in the day, looking for hints at a recovery from a one-month slump.
The dollar index traded at 91.004, recovering from a low of 90.679 hit on Monday, its lowest since March 3. The euro dropped 0.2% to $1.2073, below Monday’s two-month high of $1.2117.
The U.S. Federal Reserve said last year that it aims to bring the average inflation to 2% and to allow it to surpass that level, rather than keeping it steady.
The dollar traded at 108.855 against the yen, following a 0.59% jump overnight and extending its recovery from a seven-week trough of 107.48 hit last week.
The Japanese currency fell against the euro, hitting a 2 and a half-year low of 131.57. Against the Swiss franc, it stood at 119.08.
Elsewhere, the Aussie fell 0.3% to $0.77415 after the country’s consumer price index showed to be lower than expected.