US Dollar Gains as Traders Await Federal Reserve Meeting

US dollar is heading higher today as traders look forward to the coming two-day meeting of Fed policymakers. Greenback is also getting some support from worries about what’s next for Greece.

The members of the Federal Reserve’s Federal Open Market Committee are starting a two-day meeting today, and many expect to see signs that interest rates will rise in September. While there are some concerns that the strong dollar has crimped US industrial output and weighed on exports, the reality is that the job situation has been improving and the economy has made slow — but steady — progress. As a result, Forex traders and others expect the Fed to begin raising interest rates later this year.
Also contributing to dollar strength right now is the fact that Greece has many worried about the eurozone. Once again, it appears that we are approaching the eleventh hour and there is no compromise in sight for the Greek situation. This uncertainty and drama are weighing on the euro, while sending the dollar higher.
At 11:07 GMT the US dollar index is up to 94.97 from the open at 94.85. EUR/USD is down to 1.1262 from the open at 1.1284. GBP/USD is up to 1.5605 from the open at 1.5602. USD/JPY is up to 123.5350 from the open at 123.4140.

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