The dollar rose in Asian trading this morning (Dec. 15) as investors waited for the Federal Reserve meeting to determine whether it would support rising market expectations for a rate hike early next year.
- The dollar index against the six major currencies in a basket of currencies was 96.557, with a 0.5% gain this week.
- The euro last traded at $1.1265.
- The pound fell to $1.13326 as the U.K. grapples with rising Omicron coronavirus cases.
- The yen weakened slightly to 113.78 per dollar.
- The Australian dollar was little changed at $0.7107. Investors in Australian currency have been closely watching data on China’s economic activity. Because China is Australia’s largest trading partner.
- The Canadian dollar was lower at 1.2854 per dollar as oil prices climbed from recent highs.
The meeting of the U.S. Federal Reserve comes to an end today which was the centerpiece of a week full of central bank meetings.
Markets will have to put a price on the Fed ending its bond purchases in March and raising interest rates one or two times in 2022. That may go to the pain of investors who are currently dabbling in the markets.