The dollar’s price drops ahead of the US Federal Reserve’s decision
The US dollar fell against a basket of currencies as investors evaluated the size of the US Federal Reserve's expected move to increase interest rates this week and its future path.
The greenback hit a 20-year high last week on expectations that the US central bank will be more aggressive in tightening monetary policy, while inflation is at its fastest pace in 40 years.
The Fed is expected to raise interest rates by 50 basis points and announce a plan to cut its $9 trillion balance sheet when it concludes its two-day meeting.
Traders expect the Federal Reserve's benchmark interest rate to rise to 2.89 percent by the end of the year from 0.33 percent currently.
And the dollar index recorded in late trading 103.482, down 0.25 percent after it reached 103.93 last Thursday, the highest level since December 2002. Markets are awaiting the US government's jobs report for April to be released on Friday.
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