Apr 30 2024: The U.S. dollar gained ground on Tuesday ahead of the Federal Reserve’s policy-setting meeting, while the Japanese yen retreated slightly after suspected intervention.
The Dollar Index, which measures the dollar against a basket of six major currencies, rose by 0.3% to 105.780 at 04:40 ET (08:40 GMT), marking a monthly increase of about 1.4% for April.
Investors have favored the dollar this month due to stronger-than-expected U.S. inflation data, prompting a reassessment of potential rate cuts by the Federal Reserve. The central bank is anticipated to maintain interest rates at levels between 5.25% and 5.5% at the conclusion of its meeting on Wednesday.
Despite positive retail sales growth in Germany for March, the euro struggled to gain against the dollar, slipping by 0.2% to 1.0702.
Similarly, the British pound declined by 0.2% against the dollar to 1.2534 amid the dollar’s strength, resulting in a monthly drop of around 0.7%.
USD/JPY saw a 0.4% increase to 156.88, with the yen weakening slightly following suspected government intervention following sharp gains in the previous session.
In Asian markets, USD/CNY traded 0.1% higher at 7.2416 after mixed Chinese purchasing managers index data indicated some economic slowdown.
The Australian dollar (AUD/USD) fell by 0.6% to 0.6527 due to significantly weaker-than-expected retail sales data affecting market sentiment toward the Aussie dollar.
