Summary US dollar held steady Monday ahead of a historic Federal Reserve meeting.
NEW YORK (AFP) - The US dollar held steady Monday ahead of a historic Federal Reserve meeting expected to raise the benchmark US interest rate for the first time after seven years near zero.
Economists and the financial markets are strongly convinced that the increase -- likely a quarter point to a range of 0.25-0.50 percent -- will be announced when the Fed ends its two-day policy meeting on Wednesday.
But there is disagreement on how fast subsequent rate increases promised by the Fed will come, and traders remained cautious Monday ahead of the Fed s policy statement and growth and rate forecasts, due at 2:00 pm (1900 GMT) on Wednesday.
After falling back from highs last week, the dollar ended Monday barely changed from Friday, trading at $1.0992 per euro and at 120.98 yen about 2200 GMT.
"The dollar for months has been bought in anticipation a Fed rate hike would come to fruition before the end of the year," said forex specialist Joe Manimbo at Western Union Business Solutions.
"The near-certainty of a rate hike Wednesday has started to translate into weakness for the dollar, as it succumbs to the classic market play of buy the rumor, sell the fact. "
"Markets will have more than a rate decision to digest with the central bank also unveiling fresh forecasts for the economy and interest rates, while Chair Janet Yellen will hold a post-meeting news conference," he added.
