Dollar rises, investors anticipate new ECB policy decision
The dollar rose on Thursday morning in Asia before the European Central Bank’s new policy decision. Investors’ concerns on the COVID-19’s effect on economic rebound also drove its small gain.
The U.S. Dollar Index that measures the greenback against other major currencies tallied an increase of 0.02% to 92.668 by 10:54 PM ET (2:54 AM GMT).
The USD/JPY pair declined 0.08% to 110.14.
The AUD/USD pair slid 0.07% to 0.7359, and the NZD/USD pair nudged 0.03% lower to 0.7092.
The USD/CNY pair was down 0.01% to 6.4604, while the GBP/USD pair increased 0.02% to 1.3771.
The ECB is set to release its policy decision today, with investors expecting an announcement on the start of its asset tapering. The central bank could cut its purchase under the pandemic emergency purchase program (PEPP) to as low as EUR60 billion ($75.96 billion) monthly from the current EUR80 billion before its expiry in March 2022.
Although, some investors believe the ECB will continue to provide monetary support for a long time even if the scheme expires.