The US dollar rose against a basket of other major currencies on Tuesday after the Fed officials told about the possibility of raising interest rates during the next month.
The US Dollar Index, which shows the value of the dollar against a trade-weighted basket of six major currencies, rose 0.57% to 101.50.
On Monday, the head of the Federal Reserve Bank of Cleveland, Loretta Mester, said that raising interest rates would be convenient if the economy continues to develop in the same pace.
This happened before the Wednesday’s publication of the statement on the Fed’s January meeting, from which investors expect to receive additional signals about the timing of the next raise in interest rates this year.
The Fed Chairman, Janet Yellen, said last week that the decision to raise the interest rate will be taken during one of the future meetings of the Federal Open Market Committee.
The Fed indicated that it can raise interest rates three times this year.
According to the forecasts, the probability of rate hikes in March is less than 20%. The chances of a rate hike in June are considered slightly below 50%.
The dollar rose against the yen: USD/JPY fell 0.51% to 113.68, back to 9-week low of 114.95, recorded last Wednesday.
The euro remains under pressure because of fears that the results of the upcoming elections in France can prove as shocking as the Brexit vote of the victory of Trump. EUR/USD slipped by 0.69% to 1.0538.
According to a survey conducted on Monday, Marine Le Pen is likely to win in the first round of elections, which will take place in April. But then, she would lose to her rival in the final round of voting, which will take place in May.
The euro fell against the yen and pound: EUR/JPY fell 0.18% to 119.8, and EUR/GBP slipped by 0.36% to 0.8488.
The pound fell against the dollar: GBP/USD fell 0.37% to 1.2413.