Dollar rose in European trade on Monday against a basket of major rivals, approaching six-week highs on strong demand ahead of the Federal Reserve's first policy meeting of 2024.
The Fed is highly unlikely to change interest rates this meeting but will likely reveal more clues about the future of monetary policies and interest rates.
The Index
The dollar index rose 0.3% to 103.75, with a session-low at 103.42, after falling 0.1% on Friday on profit-taking off six-week highs at 103.82.
The index rose 0.25% last week, the fourth weekly profit in a row as prospects of early Fed interest rate cuts this yearfade.
US Rates
The odds of a 0.25% US interest rate cut at the Fed March meeting stand at 49%, while the odds for such a cut in May stand at 93%.
Traders overall bet on six interest rate cuts this year in the United States, up from 5 expected cuts last week.
The Fed
Tomorrow the Federal Reserve is convening to discuss policies and interest rates, expected to maintain them unchanged at 5.5%, a 22-year peak.
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