The dollar weakened against its rivals on Tuesday, heading back toward a recent three-month low before a U.S. Central Bank meeting gets underway with expectations growing the Fed will signal its first rate cut in a decade.
However, with much dovishness already priced into the markets and the dollar having weakened one per cent over the past three weeks, some market analysts say the greenback may strengthen if the Fed signals a more neutral stance. Against a basket of its rivals, the dollar edged 0.1 per cent lower at 97.437 and not far away from a three-month low of 96.46 hit earlier this month.
The euro wallowed at the lower end of a recent trading range against the dollar, holding above the 1.12 dollar line, as markets awaited a speech by European Central Bank Chief Mario Draghi where he might shed more light on how policymakers will fight the next economic downturn.
Thank God