Dollar Hits 11 Month High

Dollar Hits 11-Month high vs yen, Fed In Focus The dollar edged higher against the euro and Japanese yen as the fed’s meeting is in focus, where no changes is likely, but investors are expecting more upbeat comments from them on the economy given strong jobs payroll last week. The dollar surged to new 11-month highs against the yen, while the dollar index continued to surge and made 7-week highs. The dollar paired early losses against the yen after the Bank of Japan showing less sign of taking aggressive easing steps on Tuesday. The dollar initially weakened versus the yen after the Bank of Japan unanimously decided to keep its key overnight call rate at 0% to 0.1%.The yen has corrected sharply against the dollar this year, after the Bank of Japan announced more asset buying and an inflation target. The ICE dollar index, which measures the greenback against a basket of six currencies, traded at 79.10,down from 79.869 in late North American trading on Monday, , while the British pound gained marginally at $1.5647, versus $1.5636. The dollar jumped to 82.71 yen, compared with ¥82.26 in late North American trading on Tuesday. The euro was unable to get the advantage of better-than-expected jump in the March ZEW indicator of German investor expectation, which rose to its highest level since June 2010.. The euro fell to $1.3089 from $1.3153 in late trading Monday. Investors are seeing very less chance of rate cut in today’s meeting, but it would be notable to see how they elaborate the facts about the recent development. Analysts’ believe that there is not going much from the Fed, so all the focus would be on retail sales for February. The Australian dollar recovered after hitting a seven-week low of $1.0475 on Monday, to trade at $1.0523, but it is expected to show significant resistance at $1.0670.