The dollar settled near 5-week lows on Wednesday, and gold prices moved in a narrow range ahead of the conclusion of the Federal Reserve's monetary policy meeting as investors await clarification on the path that the central bank is likely to take in the wake of global banking turmoil.

Investors' eyes are focused on whether the Fed will stick to monetary tightening to combat stubborn inflation or temporarily stop raising interest rates, in light of the recent problems banks have faced, including bankruptcies and bailouts.

The dollar index, which measures the greenback's performance against six major currencies, was at 6.103 points, slightly higher than the five-week low of 19.5 points, which it touched last night.

The euro was at $1.0770, flat near a five-week high of $5.1 hit overnight.

Markets now expect the Federal Reserve not to raise interest rates by 15%, with an 85% chance of raising them by 25 basis points. Just a month ago, the market was expecting a 24% rate hike of 50 basis points.


Investor sentiment remained fragile as concerns about the future of the banking sector began to recede following sharp market volatility over the past few weeks, which saw two U.S. banks collapse earlier this month and Credit Suisse bailed out earlier this week.

The Federal Reserve concludes its meeting today, and the monetary policy statement is due to be published by 18:00 GMT, followed half an hour by a press conference by Federal Reserve Chairman Jerome Powell.

For other currencies:

  • The Japanese yen rose 0.04% to 132.47 per dollar.
  • The British pound was at $1.2233.
  • The Australian dollar increased to $0.6694.
  • The New Zealand dollar was at $0.6199.

Cryptocurrencies rose 0.44% in the latest transactions to $28,276.58, but still below the 9-month high recorded on Monday.

Gold stabilizes

Gold prices moved in a narrow range today, with some investors reluctant to trade pending the US Federal Reserve's interest rate decision and the future of monetary policy.

Spot gold settled at $1940,11.05 an ounce by 40:2 GMT after falling 0% yesterday, and U.S. gold futures increased 1.1942% to $10,<>.<>.

The precious metal jumped last period by about 10%, or about $ 180, hitting its highest level in a year thanks to demand for it as a safe haven after the collapse of the US Silicon Valley Bank (SVB) and the crisis of Credit Suisse, but prices calmed after the rescue of Credit Suisse revived risk appetite despite continued uncertainty about the financial system.