The U.S. dollar continued to weaken against its major counterparts during the overnight session as investors increased their appetite for higher-yielding assets, and the reserve currency may face increased volatility throughout the U.S. trade as the FOMC is widely expected to hold the benchmark interest rate at 0.25% and maintain its $1.75T asset purchase program in order to encourage a sustainable recovery. At the same time, market participants speculate the central bank to signal an end to its easing cycle as Fed Chairman Ben Bernanke sees the economy emerging from the worst recession since the post-war period, and comments following the meeting are likely to shake up the markets as investors weigh the outlook for future policy.
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The U.S. dollar continued to weaken against its major counterparts during the overnight session as investors increased their appetite for higher-yielding assets, and the reserve currency may face increased volatility throughout the U.S. trade as the FOMC is widely expected to hold the benchmark interest rate at 0.25% and maintain its $1.75T asset purchase program in order to encourage a sustainable recovery. At the same time, market participants speculate the central bank to signal an end to its easing cycle as Fed Chairman Ben Bernanke sees the economy emerging from the worst recession since the post-war period, and comments following the meeting are likely to shake up the markets as investors weigh the outlook for future policy.
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