U.S. dollar slips ahead of Fed decision

U.S. dollar slips ahead of Fed decision

NEW YORK, Jan. 31 (Xinhua) — The U.S. dollar weakened in late trading on Tuesday as market participants digested the latest economic data while awaiting a key policy decision from the Federal Reserve.

The dollar index, which measures the greenback against six major peers, decreased 0.18 percent to 102.1000.

In late New York trading, the euro was up to 1.0863 U.S. dollars from 1.0846 dollars in the previous session, and the British pound decreased to 1.2321 U.S. dollars from 1.2345 dollars in the previous session.

The U.S. dollar bought 130.16 Japanese yen, lower than 130.52 Japanese yen of the previous session. The U.S. dollar fell to 0.9158 Swiss francs from 0.9253 Swiss francs, and it decreased to 1.3307 Canadian dollars from 1.3383 Canadian dollars. The U.S. dollar rose to 10.4657 Swedish Kronor from 10.4040 Swedish Kronor.

The Fed is expected to raise interest rates by 25 basis points when concluding a two-day policy meeting on Wednesday.

On the economic front, the U.S. Labor Department reported Tuesday that the U.S. employment cost index, a barometer the Fed watches for inflation signs, increased 1 percent in the fourth quarter of 2022, a bit below the 1.1 percent consensus and less than the 1.2-percent reading in the third quarter.

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Author: Shirley