The dollar holds onto its gains as investors assess the damage of the Chinese virus
Economy News _ Baghdad
The dollar stabilized near its highest level in two months and so did other currencies seen as safe havens while investors regained their calm after the outbreak of the Corona virus in China, and they were watching more news about the potential economic damage.
The dollar index, which tracks the performance of the greenback versus a basket of six major currencies, rose in the last trading 0.1 percent to 98.089, while the euro fell 0.2 percent against the US currency to 1.1002 dollars, near its lowest level since November 29.
The US currency is up 1.8 percent against a basket of major currencies since the beginning of the year, ahead of the Federal Reserve (US central bank) meeting later today.
The US central bank is not expected to adjust interest rates when it makes its decision by 1900 GMT, but investors will want to know whether Jerome Powell will keep his optimistic tone cautiously.
The yen, which jumped earlier this week as investors bought the currency that is a store of value in times of tension, was trading at 109.10 yen to the dollar, rising slightly during the session.
The Swiss franc rose 0.1 percent to 1.0713 francs to the euro, but fell somewhat from the high level of 1.0666 recorded on Tuesday.
The newly detected corona virus is a cause of concern due to its rapid spread and lack of known information. The death rate rose sharply to 132 today, with nearly 1,500 cases registered, bringing the total to nearly 6,000.
But there are signs that investor anxiety has eased.
And the yuan rose in foreign market trading slightly to 6.9605 to the dollar, below the level recorded on Monday at 6.9900, the weakest level in nearly a month. The Chinese currency has seen heavy selling in the past few days.
The pound fell 0.1 percent to $ 1.3020 before a meeting of the Bank of England on Thursday. And investors are divided over whether the bank will cut interest rates.
The Australian dollar strengthened recovery from the lowest level in three and a half months after inflation data came in stronger than expected. The Australian dollar was little changed during the session, to record $ 0.6761.