Dollar extends losses before Fed's meeting

Dollar fell in European trade on Tuesday against a basket of major rivals for another session on profit-taking off 19-month highs hit on Friday, under pressure from President Donald Trump's pressure on the Federal Reserve to avoid hiking rates ahead of the last policy meeting of 2018. 

The dollar index fell 0.4% to 96.70, with an intraday high at 97.15. 

The dollar closed down 0.4% yesterday, the first loss in three days on profit-taking after hitting a 19-month high at 97.71 on Friday. 

President Trump continues to criticize the Fed for tightening monetary policy, especially amid uncertainty over the global economic and political landscape. 

That comes a day before the Fed decides on policy tomorrow, with analysts fully expecting a 25 basis point rate hike to 2.5%, the fourth this year. 

The Fed will also release three-year forecasts for growth, inflation, unemployment, and interest rates. 

Now investors await US housing data, with building permits expected with a 0.4% drop to 1.260 million units, while housing starts are estimated with a 0.2% increase to 1.230 million.