Dollar remains broadly lower ahead of Wednesday’s interest
rate decision by Federal Reserve , its third since rate hike in December.
In each of its first two
meetings in 2016, the Fed has held its benchmark Federal Funds Rate at a
targeted range between 0.25 and 0.50%. In March, the FOMC voted 9-1 to leave
the Fed Funds Rate unchanged
While the FOMC is not expected to lift short-term rates at
this week's meeting, the Fed could provide hints on the timing of further
tightening of its monetary policy cycle.
The dollar has fluctuated in recent
weeks following extremely
dovish comments from Fed chair Janet Yellen on the likelihood
that the central bank will remain cautious on future rate hikes, amid strong
headwinds from global financial markets.
Any rate hikes by the Fed this year are viewed as bullish
for the dollar.
Dollar index trading at 94.75 has a support at 94.00, resistance
at 95.20 and likely to trade in the same range.
If closes above 95.20, it can touch the level of 96.00 else could test
its support level 95.00.
