By Sarah Turner, MarketWatch
SYDNEY (MarketWatch) — The U.S. dollar index pared some recent gains on Tuesday ahead of a policy decision from the Federal Reserve’s interest-rate setting committee.
The dollar index DXY -0.16% , which measures the greenback against a basket of six currencies, traded at 79.518, from 79.533 in late North American trading on Monday.
U.S. retail sales are on tap for later in the global trading day. The Federal Reserve’s interest rate committee is due to announce an interest rate decision. Read Fed preview.
“We do not look for any big surprise from either of these, but at least the Fed may sound a little more positive in light of firmer data over recent weeks,” said Credit Agricole strategists.
The dollar index gained on Monday but the euro EURUSD +0.05% fell to its lowest level in two weeks — $1.3177 — before recovering slightly to $1.3188 by late trading.
The euro traded at $1.3186 on Tuesday.
“There is still some way to go before a turning point in the euro crisis is reached. One reason being the apparent lack of firepower to support sovereign bonds, particularly from the European Central Bank,” said the Credit Agricole strategists.
The British pound GBPUSD +0.16% traded at $1.5606, compared to $1.5584 in late trading Monday. The dollar USDJPY -0.08% bought 77.88 yen, from ÂĄ77.96.
Sarah Turner is MarketWatch's bureau chief in Sydney.
