US dollar weaker ahead of Fed decision

US dollar weaker ahead of Fed decision

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The US dollar was weaker against both the euro and sterling again on Wednesday as investors waited to see what the Federal Reserve would do about interest rates.

The greenback also lost ground to the Canadian and Australian dollars as the vast majority of economists in one survey expected the Fed to cut rates again, with those not expecting a quarter-point cut looking for either a half-point cut or no change at all.

In mid-afternoon trade in New York, the dollar stood at $1.4459 in relation to the Euro, while it was at $2.0782 against sterling, at $1.0515 versus the Canadian dollar and at $0.9257 against the Australian dollar.

While most analysts expect that today will bring another rate cut from the Fed, fewer are expecting another cut in December.

Meanwhile, the yen also weakened after the Bank of Japan decided to hold interest rates there at their current 0.5 percent.

At last report, the yen was trading at ¥115.2350 versus the US dollar, at ¥166.6240 in relation to the euro, and at ¥239.4812 against sterling.