U.S. Dollar Rises Against Major Counterparts

(RTTNews) - The U.S. dollar climbed higher on Tuesday, gaining against most of its major counterparts, on bets the Federal Reserve is unlikely to cut interest rate in March.

The personal consumption expenditure price index - the Fed's preferred inflation gauge and an advance fourth-quarter GDP data will be closely watched ahead of the Federal Reserve's policy meeting due next week.

In economic news today, the Richmond Fed manufacturing survey current conditions reading dropped to a three-and-a-half year low of -15.

The dollar index, which surged to 103.82, pared some gains as the session progressed, and was at 103.55 a little while ago, up 0.21% from the previous close.

Against the Euro, the dollar firmed to 1.0855 from 1.0885. The European Central Bank, which meets on Thursday, is widely expected to keep interest rates unchanged. The bank's statement will be closely watched for clues about the timing and pace of interest rate cuts.

The dollar was up against Pound Sterling at 1.2686, gaining from 1.2711.

Against the Japanese currency, the dollar gained, fetching 148.36 yen a unit. The Bank of Japan left its massive monetary stimulus unchanged and downgraded its inflation outlook for the next fiscal year.

The BoJ policy board, led by Governor Kazuo Ueda, unanimously decided to maintain a negative interest rate of 0.1% on current accounts that financial institutions maintain at the central bank.

The bank will continue to purchase a necessary amount of Japanese government bonds without setting an upper limit so that 10-year JGB yields will remain at around 0%.

The bank also decided to regard the upper bound of 1% for 10-year JGB yields as a reference in its market operations.

Against the Aussie, the dollar weakened to 0.6579 from 0.6569. The Swiss franc weakened to 0.8705 against the dollar.

The Loonie gained against the dollar, firming to C$ 1.3463. The Bank of Canada is widely expected to keep its interest rate unchanged when it announces the monetary policy decision on Wednesday.