Por Tommy Wilkes
LONDON, Nov 3 (Reuters) – The dollar held close to recent peaks against the euro and yen on Wednesday as investors wait for the U.S. Federal Reserve to begin undoing its pandemic-era stimulus and await Jerome Powell’s opinion on inflationary pressures.
* The moves were marginal in Asia and at the start of the European trading day amid a busy week for central banks, with the Bank of England meeting on Thursday.
* The head of the European Central Bank, Christina Lagarde, said that an increase in interest rates in 2022 is highly unlikely because inflation is too low, causing lower government bond yields. But the euro barely moved.
* Against the euro, the greenback dropped marginally to $ 1.1592, not far from the $ 1.1522 level reached in October and the strongest level for the dollar since July 2020.
* The dollar index fell 0.1% to 93,996 units, but remained near its 2021 high of 94,563 units reached last month.
* The dollar was trading at 113.8 yen, close to a four-year high.
* The market expects the Fed to announce the reduction of its asset purchase program of $ 120 billion a month in its policy statement at 1800 GMT.
* Traders focus on clues as to what that means for rate hikes, following a month of bond market earthquakes in anticipation of hikes as early as next year.
Disclaimer: This article is generated from the feed and not edited by our team.