Dollar up vs euro after German vote on spending surge
The dollar edged up against the euro on Tuesday as Germany’s parliament approved plans for a massive spending surge on Tuesday and as the Federal Reserve kicked off its March policy meeting that could offer clues to the path of U.S. interest rates.
The euro was 0.2% lower at $1.0915, after hitting $1.0954 earlier in the session, its highest since October 10.
The German parliament’s approval of plans for a massive spending surge throws off decades of fiscal conservatism in hopes of reviving economic growth and scaling up military spending for a new era of European collective defence.
The euro rose earlier in the session after data showed German investor morale improved more than expected in March.
Broadly, currency market moves were largely muted as potential catalysts, including the German vote, developments on a possible Russia-Ukraine peace deal and policy announcements from major central banks in coming days, kept traders cautious.
While analysts expect the Fed to hold its monetary policy stance amid persistent inflation concerns, investors will be looking to new economic projections from Fed officials for evidence of how U.S. central bankers view the likely impact of Trump administration policies.
The greenback hit a two-week high against the yen as investors await the outcome of Wednesday’s policy meeting from the Bank of Japan. The dollar was last up 0.3% at 149.65 yen.
BOJ policymakers are expected to discuss just how much of a risk the escalating U.S. trade war poses to Japan’s economy.
Elsewhere, the Australian dollar slipped 0.5% to $0.6352 after rising to its highest in about a month on Monday.
Bitcoin, the world’s largest cryptocurrency by market cap, was down 2.5% at $81,878.
Source: Investing.com
