The dollar is strong this morning ahead of the Federal Reserve’s decision on interest rates.
The Federal Reserve is expected to pave the way for an interest rate hike in March and the markets will be listening closely for timings on raising the interest rate and tapering monetary policy. If they signal an earlier end to monetary policy and a faster pace of hikes, then the dollar could benefit.
The greenback is still being supported by the tensions in Ukraine, as it is a ‘safe-haven’ currency. As there are no signs of the situation de-escalating, it may continue to be supported by this.
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