The U.S. dollar was stronger against other currencies on Tuesday as investors waited for the Federal Reserve to cut rates, while the pound continued to fall on fears of a no-deal Brexit.
The U.S. dollar index, which measures the greenback’s strength against a basket of six major currencies, rose 0.1% to 97.877 by 10:38 AM ET (14:38 GMT).
The Fed's two-day monetary policy meeting starts on Tuesday, with a rate cut of at least 25 basis points expected on Wednesday.
Support for a cut of at least 50 basis points fell early in the month after upbeat U.S. economic data, including Friday's GDP numbers.
The dollar rose against the Japanese yen, with USD/JPY down 0.2% to 108.58 after the Bank of Japan left its interest rate unchanged at -0.1% overnight and revised its forecast for inflation down.
Sterling continued to decline after falling over 1% on Monday, as newly elected Prime Minister Boris Johnson told the Irish Prime Minister Leo Varadkar that he wants to take the U.K. out of the European Union by Oct. 31 regardless of whether or not there is a deal.
Source : Investing.com