US dollar skids ahead of Fed minutes

The US dollar dipped noticeably in late trading on Tuesday as market participants cautiously awaited the meeting minutes from the Federal Reserve.

The dollar index, which measures the greenback against six major peers, slipped 0.63 per cent at 92.2782.

In late New York trading, the euro was up to $1.1936 from $1.1864 in the previous session, and the British pound increased to $1.3240 from $1.3101 in the previous session. The Australian dollar rose to $0.7243 from $0.7207, Xinhua reported.

The US dollar bought 105.39 Japanese yen, lower than 106.03 Japanese yen of the previous session. The US dollar fell to 0.9028 Swiss franc from 0.9063 Swiss franc, and it decreased to 1.3158 Canadian dollars from 1.3196 Canadian dollars.

The Fed is set to publish the minutes from its latest policy meeting on Wednesday. The dollar has weakened considerably since the US central bank’s aggressive move to maintain market liquidity amid the coronavirus pandemic.

Meanwhile, experts noted that uncertainty in US politics is likely to pressure the greenback.

“The market would have to be prepared for further uncertainties and possible (negative) surprises in US politics even if the US stock market might react positively short-term,” Antje Praefcke, analyst at Commerzbank, said in a note on Tuesday, adding “the downside risks for the dollar will continue to dominate one way or the other.”