The U.S. dollar fell for the fourth straight day as evidence of an unsteady U.S. economic recovery dampened expectations for an increase in interest rates next year. Today's move comes before the Federal Reserve sets monetary policy today.
According to a report from Bloomberg, the dollar was at $1.2743 per euro after falling 0.7 percent in the three days prior to today's open. The greenback was little changed at 108.14 yen. Japan's currency traded at 137.80 per euro after reaching 137.82, the lowest level since Oct. 9. The Bloomberg Dollar Spot Index, which tracks the currency against 10 major counterparts, slipped 0.1 percent to 1,061.97 at 9:56 a.m. New York time, after briefly hitting 1,061.96.
While the dollar gained strength on increased U.S. consumer confidence and employment data, investors seem to be taking a "wait-and-see" approach to the currency ahead of the FMOC meeting on Wednesday. NASDAQ reported that while investors know that the Fed has ended its easing program, it may wait before it raises interest rates.
"Because the current risk-on mood can be a reason behind the dollar-selling, we don't see a dollar rally (across the board) as we saw in past sessions," said Daiwa Securities chief FX analyst Yuji Kameoka.
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