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Dollar Stays Steady Against Most Rivals

Dollar Stays Steady Against Most Rivals

The U.S. dollar stayed fairly steady on Tuesday and saw some gains against some major currencies, ahead of the European Central Bank’s policy move, due on Thursday.

Investors were also weighing the prospects of an interest rate cut by the Federal Reserve next week.

The dollar index rose to 98.46 before paring some gains. It was last seen hovering around 98.40, up 0.12% from previous close.

Against the euro, the dollar strengthened to 1.1031 before noon, but eased to 1.1042 later on in the day, gaining just 0.05%.

European Central Bank President Mario Draghi, whose term expires at the end of October, is widely expected to announce a fresh round of stimulus measures on Thursday to rev up the euro area economy.

However, the group of hawkish policymakers opposed to a restart of the quantitative easing, or QE, has grown, casting doubts on the expectations for a comprehensive stimulus package.

In the July policy meeting, the ECB had altered its forward guidance to clearly signal that it is planning an interest rate cut in the near term and a comprehensive stimulus package that could include a tiering system and a fresh round of asset purchases.

The Pound Sterling was up slightly with a unit fetching $1.2348. The dollar, which was around 1.2305 earlier in the day, weakened to 1.2375 by mid morning, but pared a substantial portion of losses as the day progressed.

The UK unemployment rate remained at the lowest since late 1974, the Office for National Statistics reported Tuesday. In three months to July, the ILO jobless rate remained unchanged on quarter, at 3.8%, but slightly below the expected 3.9%.

The employment rate came in at 76.1% in three months to July, the joint-highest on record.

The Yen was down by about 0.3% against the dollar, at 107.56, near the day’s low.

The dollar was down 0.14% against the loonie at 1.3149, down marginally against Swiss franc at 0.9920. It was down marginally against the Aussie as well, with the pair trading at 0.6861.

The material has been provided by InstaForex Company – www.instaforex.com