U.S. Dollar Firms As Fed Meeting Nears

04:47, 24th January 2022

(RTTNews) - The U.S. dollar appreciated against its most major counterparts in the European session on Monday, amid expectations of a policy tightening by the Federal Reserve and rising tensions about Russia's military buildup on the Ukraine border.

Investors awaited the Fed's two-day policy meeting starting on Tuesday for more signals on its outlook for rate hikes.

Markets are pricing in a total of four hikes this year, with the first increase seen in March.

U.S. President Joe Biden is planning to send 1,000 to 5,000 troops to eastern Europe due to the growing risk of a Russian attack into Ukraine.

The greenback rose to a 3-week high of 1.3444 against the pound and a 2-week high of 1.1290 against the euro, off its early lows of 1.3565 and 1.1345, respectively.

The greenback jumped to a 5-week high of 0.7091 against the aussie and a 2-week high of 1.2680 against the loonie, up from its prior lows of 0.7188 and 1.2554, respectively.

The greenback reversed from an early low of 0.9109 against the franc, gaining to 0.9153. Against the NZ dollar, it rallied to 0.6675, its highest level since November 2020.

The greenback is seen finding resistance around 1.31 against the pound, 1.10 against the euro, 0.93 against the aussie, 1.29 against the loonie, 0.93 against the franc and 0.66 against the kiwi.