The dollar is currently turning in a mixed performance Tuesday afternoon, but is little changed overall. The Federal Reserve began its two-day policy meeting earlier today and will announce its decision Wednesday afternoon. The central bank is widely expected to announce an interest rate hike when it concludes its meeting.
Traders will be paying close attention to Fed Chair Janet Yellen's accompanying press conference for clues about whether rates will be hiked again in the coming months.
The U.S. Labor Department said its producer price index for final demand advanced by 0.3 percent in February. This followed a rise of 0.6 percent in January. Economists had expected PPI to rise by 0.1 percent for the month.
The dollar has risen to around $1.0630 against the Euro Tuesday afternoon, from an early low of $1.0662.
Eurozone industrial production growth eased at a faster-than-expected pace at the start of the year amid weaker gains in almost all sectors, preliminary data from Eurostat showed Tuesday. Industrial production rose 0.6 percent year-on-year following 2.5 percent growth in December, which was revised from 2 percent. Economists had forecast 0.9 percent gain.
German economic sentiment improved at a slower than expected pace in March as uncertainties surrounding the upcoming elections in the EU weighed on financial market experts' expectations.
The ZEW Indicator of Economic Sentiment gained 2.4 points to 12.8 in March, survey data from the Mannheim-based Centre for European Economic Research/ZEW showed Tuesday. However, the score was below the long-term average of 23.9 and the expected level of 13.0.
Germany's inflation accelerated as estimated in February, final data from Destatis showed Tuesday. The consumer price index inflation rose to 2.2 percent from 1.9 percent in January. The rate came in line with the flash estimate published on March 1.
Wholesale prices rose again in February, according to new data released by the government on Tuesday. The pace of growth slowed notably from the previous month, but the advance was stronger than economists had expected.
The buck climbed to nearly a 2-month high of $1.2106 against the pound sterling Tuesday, but has since eased back to around $1.260.
The greenback rose to an early high of Y115.194 against the Japanese Yen this morning, but has since retreated to around Y114.650.
by RTT Staff Writer
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