The U.S. dollar exhibited strength against other major currencies on Tuesday after U.S. Treasury yields rose ahead of the Federal Reserve’s monetary policy announcement, due on Wednesday.
The Fed is widely expected to maintain its ultra-easy monetary policy, but traders will be paying close attention to any changes to the accompanying statement that may signal a shift in the near future.
The Fed had pledged to keep borrowing costs unchanged until the economy reaches full employment and inflation attains 2% target.
A report from the Conference Board today showed U.S. consumer confidence reached its highest level since February of 2020 in the month of April.
The Conference Board said its consumer confidence index jumped to 121.7 in April after spiking to a revised 109.0 in March. Economists had expected the consumer confidence index to rise to 112.0 from the 109.7 originally reported for the previous month.
The dollar index, which rose to 91.07 in the Asian session, pared some gains as the day progressed and was last seen at 90.90, up 0.11% from previous close.
Against the Euro, the dollar was little changed a little while ago, at $1.2089, after having firmed up to $1.2057 in the Asian session.
The Pound Sterling was up marginally, fetching $1.3904 a unit, compared to $1.3901 on Monday.
The Yen weakened to 108.77 a dollar, giving up more than 0.6%.
With the AUD-USD trading at 0.7769, the greenback was gaining about 0.4%.
The Swiss franc firmed up to 0.9143, gaining from 0.9172, while the Loonie was down marginally at 1.2401 a dollar.