Dollar rises in price on expectations before the meeting of the Federal reserve

© RIA Novosti / Natalia to Seliverstova photobacteria in the USA. Archival photoDollar rises in price on expectations before the meeting of the Federal reserve© RIA Novosti / Natalia to Seliverstova the image Bank

The dollar is growing weak against foreign currencies on Tuesday morning — investors awaited the Federal reserve system (FRS), according to the auction.

As at 08.18 GMT the dollar index (dollar to a basket of six currencies of countries — major U.S. trading partners) increased by 0.07%, to 97,23 points. The Euro-dollar exchange rate decreased to 1,1193 the dollar with 1,1204 dollars per Euro on the previous closing. The dollar exchange rate to yen has grown to 109,97 yen per dollar from 109,95 yen in the previous session.

According to CME Group, the market estimates the probability of the fed rate hike at the June meeting which will be held this week at 99.6%. Last week the probability was estimated at 95.8%.

At the same time, according to managing Director of foreign exchange strategy at BK Asset Management Boris Schlossberg (Schlossberg, Boris), which quotes Agency MarketWatch, market expectations decreased from four to two rate increases this year.

According to the results of the may meeting of the U.S. Federal reserve, as expected, kept its benchmark interest rate at 07,5% and 1% per annum. In this case the regulator said that the US labor market continues to strengthen, and economic activity in the country slowed down. Inflation over the past 12 months approached the bar the fed target of 2%.

In addition, investors are awaiting the decisions of the Bank of England and Bank of Japan’s key rates this week. According to analysts, the regulators will keep monetary policy unchanged.

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