The dollar held on to gains that boosted it from a two-week low, as traders remained cautious before Federal Reserve officials begin a two-day meeting that’s divided the market on prospects for higher interest rates.
A gauge of the greenback climbed the most in more than a week Tuesday as Treasuries tumbled, lifting the two-year note yield to the highest since April 2011, after data showed U.S. retail sales gained. Federal Open Market Committee members must weigh signs of robust growth with figures due Wednesday that are predicted to show consumer prices fell last month. The euro maintained back-to-back declines before a report forecast to indicate prices were flat in August.
The Bloomberg Dollar Spot Index, which tracks the currency against 10 major peers, was at 1,205.20 as of 9:43 a.m. in Tokyo from 1,205.93 on Tuesday in New York, when it fell to 1,201.18, the least since Sept. 1. The dollar was little changed at $1.1277 per euro after a 0.6 percent, two-day advance. It fell 0.1 percent to 120.28 yen.
Source : Bloomberg