Dollar hovers near 8-week high with Fed rate decision in focus

The US dollar rose today against a basket of major currencies, to continue its rally for the fifth straight day, near its eight-week high, as the US currency continued to attract demand as the best alternative investment amid a risk-off move, as the coronavirus continued to spread in China, this comes ahead of the US Fed rate decision later today.

The dollar index rose 0.15% to 98.13 points, after opening at 97.95, with the session-low at 97.94.

The greenback gained 0.1% yesterday, its fourth straight daily gain, as it continued to rise against most major currencies, after strong data on US consumer confidence.

The Chinese health authorities confirmed today that 132 people had died from the coronavirus, and infected cases rose to 5,974.

The US Federal Reserve will conclude its first monetary policy meeting in 2020, with strong bets for the Fed to keep the interest rate unchanged at 1.75%.

The US monetary policy statement and interest rate decision will be released at 19:00 GMT, and Fed Chairman Jerome Powell will deliver a speech at 19:30 GMT.

Investors are anticipating Fed Chief Jerome Powell's statements, which provide insight about the future of the US interest rates, especially after he stated during the previous meeting that the Fed will keep interest rates unchanged throughout 2020.