Dollar Rises Slightly Against Euro Ahead of Fed Meeting
The dollar rose slightly against the euro and yen on Tuesday in Tokyo ahead of Wednesday's meeting of the Federal Open Market Committee.
The Federal Reserve, which has been battling an economic slowdown in the U.S., is expected to make a relatively small quarter point cut in its benchmark interest rate, compared with more aggressive rate reductions in the previous months.
During its aggressive cuts the dollar fell to record lows against the euro as investors worried about increasing inflation as U.S. money became cheaper to borrow relative to its currency rivals.
The dollar had risen versus the euro for three straight sessions but was mostly stable in Monday's session.
The dollar was at $1.5656 at 9:50 a.m. on Tuesday in Tokyo, up from $1.5599 late Friday. The U.S. currency was at 104.15 yen, down from 104.56 yen. The euro was at 163.06 yen, from 163.15 yen.
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