Dollar strengthened against the euro

Dollar strengthened against the euro


The dollar strengthened against the euro on Monday (Tuesday morning GMT ) , as traders expect the Federal Reserve will further reduce its stimulus program after its policy meeting this week .

Reduction of stimulus is called " tapering " asset purchase the Fed is likely to increase the greenback , Xinhua reported .

The Fed will begin a two-day policy meeting that starts on January 28 , which is expected to continue to reduce its quantitative easing program following an initial reduction in monthly bond purchases at 10 billion U.S. dollars announced at the December meeting .

The market expects that the Fed will reduce asset purchases by 10 billion dollars at each meeting to end the program this year , due to the activity of the U.S. economy expanded at a moderate pace and labor market conditions have shown further improvement .

On the economic front , U.S. sales of new single-family homes in December fell 7.0 percent to an annual rate of seasonally adjusted 414,000 from the previous month , beating market expectations .

In late New York trading , the euro weakened to 1.3669 dollars from 1.3677 in the previous session , and the British pound rose to 1.6577 dollars from 1.6506 dollars . The Australian dollar rose to 0.8751 dollars from 0.8712 dollars .

The dollar bought 102.74 yen , up from 102.3 yen in the previous session . The greenback rose to 0.8970 Swiss francs from 0.08950 Swiss francs , and moved up to 1.1098 Canadian dollar from 1.1068 Canadian dollar .