Dollar rises ahead of Fed news (MarketWatch) (25-01-2012)

FRANKFURT — The U.S. dollar had gains against major other currencies as investors awaited the outcome of the Federal Reserve’s policy meeting, with an eye on the revelation of individual voting members’ interest-rate expectations and Fed Chairman Ben Bernanke’s news conference.

The ICE dollar index which measures the U.S. currency against a basket of six major units, climbed to 80.195, compared with 79.853 in North America late Tuesday.

The euro dropped to $1.2966, compared with $1.3026 late Tuesday, while the British pound bought $1.5575, down from $1.5605.

Sterling was initially unfazed by a 0.2% quarterly contraction in fourth-quarter gross domestic product.

The Japanese yen continued its decline after the nation’s trade balance turned in a deficit for the first time in 31 years. The dollar rose to ¥78.09 compared with ¥77.74 late Tuesday.

The Australian dollar pushed above $1.05, then gave up gains by the U.S. session. It lately was little changed at bought $1.0473.

Source: MarketWatch