AFP, Tokyo :
The dollar fell on Wednesday as traders look to a Federal Reserve policy meeting for more clues about its timeline for raising interest rates.
The US central bank is expected to leave key rates unchanged after wrapping up its policy-setting meeting later Wednesday, but markets want to see if provides any future guidance.
After the turmoil that hammered world markets at the start of the year, US policymakers have lowered expectations for rate increases in 2016, saying they would closely monitor overseas developments before making a move.
“Market participants are just shuffling by the sidelines before they decide which way to go,” Vishnu Varathan, a Singapore-based senior economist at Mizuho Bank, told Bloomberg News.
“They want to look out for whether the (policy committee) will drop the reference to external uncertainties because that will suggest how cautious they want to be about the hike.”
Traders have predicted the Fed’s next interest rate hike will be towards the end of the year but every utterance from the bank is scru.
The dollar fell on Wednesday as traders look to a Federal Reserve policy meeting for more clues about its timeline for raising interest rates.
The US central bank is expected to leave key rates unchanged after wrapping up its policy-setting meeting later Wednesday, but markets want to see if provides any future guidance.
After the turmoil that hammered world markets at the start of the year, US policymakers have lowered expectations for rate increases in 2016, saying they would closely monitor overseas developments before making a move.
“Market participants are just shuffling by the sidelines before they decide which way to go,” Vishnu Varathan, a Singapore-based senior economist at Mizuho Bank, told Bloomberg News.
“They want to look out for whether the (policy committee) will drop the reference to external uncertainties because that will suggest how cautious they want to be about the hike.”
Traders have predicted the Fed’s next interest rate hike will be towards the end of the year but every utterance from the bank is scru.
