The world's reserve currency edged down on Tuesday against the common currency of the European Union as policy makers with the U.S. Federal Reserve began two days of long-awaited policy meetings, Bloomberg reports.
All eyes are on the Federal Open Market Committee, under the jurisdiction of chairman Ben Bernanke, to see whether the body will taper monetary stimulus measures. The dollar is likely to gain against rivals if the FOMC tapers.
"It seems like now the market is believing that tapering will be very well managed by Bernanke, that he knows exactly what the market is expecting and that he's not going to disappoint," principal and senior advisor Jack De Gan with Harbor Advisory in Portsmouth, New Hampshire, told Reuters on Tuesday.
The greenback's drop against the euro was roughly 0.1 percent on Tuesday. Against the Japanese yen, the dollar roe 0.3 percent.
The FOMC is likely to slash monetary stimulus measures, according to Reuters. Economic data recently released by the U.S. has demonstrated the globe's largest economy is stabilizing, which would merit the reduction.
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