On Tuesday, the dollar was quite defensive, burdened by the Federal Reserve’s growing expectations. It came into effect even after concerns regarding the slower economic growth of the United States.
The dollar index, which weighs the greenback against six chief currencies, dropped 0.1 percent to trade at 96.43, drifting near to a two-week low felt overnight. The U.S. dollar index shed 1.3 percent after touching a three-month high of 97.710 on March 7 after reports that the Federal Reserve will smack a gentle tone at its policy meeting for two days, which is due on later Tuesday.
Investors are expecting the Federal Reserve to maintain its benchmark interest rate unchanged overnight and stick to the pledge for a patient approach towards monetary policy. Meanwhile, the other currencies advanced a bit.
The Japanese yen climbed 0.2 percent to trade at 111.20 each dollar as extended its gains in another session. The Nikkei 225 of Japan was slightly down at 21,560.97. The 10-year JGB (Japanese Government Bond) yield remains unchanged at 0.040 percent negative while JGB futures moved 0.04 point up to 152.82. The 40-year yield was down half a point at 0.635 percent.
Sterling advanced to $1.3274 after climbing one-fifth of a percent. It seesawed after the Britain parliament’s speaker announced that Prime Minister Theresa May’s deal on Brexit cannot be voted unless presented a different proposal.
In addition to this, the euro was at $1.1344 after advancing a bit. Boeing Co dropped about 3 percent. In early trading, shares of Boeing dropped 2.8 percent to trade at $369.20. The S&P 500 rose 0.37 percent to close the session at 2,832.94 and the Dow Jones Industrial Average climbed 0.25 percent to end with 25,914.10. The FTSE 100 gained 0.98 percent to 7,299.19.