US Dollar Index Inches Higher Ahead of Today’s Fed Announcement

Forex traders and others are getting ready for a policy announcement from the Federal Reserve later today. Once again, expectations are that the Fed will raise rates sometime this year, and there are officials that think that there is room for two rate hikes in 2015. With higher rates on the way, the dollar is gaining strength.

While the greenback is trading mixed against its major counterparts, the dollar index is heading higher. Many Forex traders are waiting for the next monetary announcement from Federal Reserve Chair Janet Yellen. While there aren’t many expectations for a rate hike today, many expect a hike later in the fall, and some officials are hoping for two hikes by the end of 2015.
US dollar has been mostly stronger and is getting some help from lower commodity prices. Gold and oil continue to flounder, helping support the greenback. However, there are some concerns that continuing strength for the US dollar could result in a currency crisis among emerging market currencies.
At 12:51 GMT the US dollar index is up to 96.81 from the open at 96.64. EUR/USD is moving lower, falling to 1.1052 from the open at 1.1060. GBP/USD is higher, though, moving up to 1.5656 from the open at 1.5615. USD/JPY is higher, moving up to 123.6480 from the open at 123.5610.

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