The European single currency hit $1.4653 in morning trade, the highest point since mid-December 2009, as many dealers returned from a long holiday weekend. It later stood at $1.4619, compared with $1.4572 late in New York on Monday.
The dollar meanwhile tumbled to an all-time low point of 0.8745 Swiss francs.
Investors moved to adjust positions ahead of the US Federal Reserve's two-day policy meeting, which was to open later on Tuesday, dealers said.
The central bank's Federal Open Market Committee is widely expected to maintain interest rates at between zero and 0.25 percent, where they have stood since December 2008.
Traders are also eagerly awaiting Thursday's publication of US gross domestic product (GDP) data for the first three months of 2011.
"The US dollar continues to remain under pressure ahead of this week's key FOMC rate meeting tomorrow and first quarter GDP figures, which are due on Thursday," said CMC Markets analyst Michael Hewson.
Markets are keenly awaiting Fed chairman Ben Bernanke's first news conference on Wednesday after the meeting. It will be the first by any Fed chief, in contrast with regular news conferences held by European Central Bank President Jean-Claude Trichet.
No comments:
Post a Comment