The U.S. dollar surged higher against other major currencies on Tuesday, as U.S. treasury yields. rose ahead of the Fed meeting early Thursday morning.
Analysts expect the Fed to maintain its monetary policy. However, investors continue to look forward to the event to get more indications that there is likely to be a change in the near future.
The Fed has previously promised to keep lending rates unchanged until the economy reaches full employment and inflation reaches the 2%target.
However, analysts warn that an increase in the labor market and an increase in Covid-19 vaccination is likely to lead to the withdrawal of the stimulus package earlier than expected.
The benchmark 10 -year bond yield rose 1.581 percent. On the other hand, the Bank of Japan kept the monetary stimulus unchanged, as expected after changing monetary policy at its March meeting.
U.S. consumer confidence jumped to a 14-month high in April as increased vaccination against COVID-19 and additional fiscal stimulus allowed more service businesses to reopen, increasing demand and hiring by companies.
The US dollar index, which measures the greenback against other currencies, was strong by 0.10% at an exchange rate of 90.875 as of 11.30 p.m.
