USD rose on Thursday against a basket of major and minor currencies to continue recovering from a two-week low as investor focus shifted from the midterm congressional results to the Federal Reserve monetary policy meeting, which is expected to provide new evidence on the pace of tightening US monetary policy and raising interest rates for the fourth time this year under the strong growth of the world’s largest economy.
USD index rose more than 0.1% at 11:13 GMT, trading at 96.10 points, the opening level at 95.99 points, the highest at 96.12 and the lowest at 95.88.
The index finished yesterday’s trading flat with little change, after recording a previous two-week low of 95.47 points.
The index fell for the first time in two weeks on concerns about the US legislative process after the midterm elections, which led to the Democrats winning a majority of the House of Representatives for the first time in eight years, with the Republican Party retaining the Senate majority.
The index began to recover after a major rally on US stocks on Wall Street, as investors shifted their focus to following the results of the Federal Reserve monetary policy meeting, which began unusually Wednesday due to the election on Tuesday, 19:00 GMT.
Most expectations are that US interest rates will remain unchanged at 2.25% and that the monetary policy statement will provide strong evidence on the pace of policy tightening to keep up with strong growth in the country and raise interest rates at the December meeting for the fourth time this year.