Dollar Loses Ground Against Major Currencies
The U.S. dollar hit a near 2-week low on Tuesday as rising optimism about economic growth dimmed the demand for the safe-haven currency.
Investors were looking ahead to the minutes of the Federal Reserve’s latest monetary policy meeting.
The Fed publishes minutes from its March meeting on Wednesday, with investors looking for insight as to what it will take for policymakers to begin tightening sooner than expected.
The International Monetary Fund (IMF) raised its global growth projections for this year and next, citing huge fiscal stimulus in some big economies and a vaccine-driven recovery in the future.
The world economy is set to grow 6% this year and 4.4% next year, the global lender said in its latest World Economic Outlook report, released Tuesday.
In a January update to the WEO, the IMF had projected growth of 5.5% and 4.2%, respectively. The latest projections are also stronger than those in the October WEO report.
The dollar index dropped to 92.27, losing about 0.34% from previous close.
Against the Euro, the dollar weakened to 1.1871, sliding 0.5% from Monday’s close of $1.1813.
The Pound Sterling was weak against the dollar, fetching $1.3828 a unit, about 0.51% less than previous close.
The Yen was stronger at 109.74, firming up by about 0.4%
Against the Aussie, the dollar was weak with the AUD-USD pair at 0.7665.
The Swiss franc was stronger at 0.9307 a dollar, firming up from 0.9367, while the Loonie weakened to C$1.2570 a dollar from C$1.2525.