Currencies Overview: The Dollar is Under Test

The dollar rose in early European trading on Wednesday, but moves were set before the conclusion of a crucial Federal Reserve meeting later in the session.

The dollar index, which measures the greenback against a basket of six other currencies, was up 0.1% at 93.255, away from Tuesday’s high of 93.455, which is Its strongest level since August 23.

Also, USDJPY rose 0.3% to 109.54 after the Bank of Japan kept negative interest rate and asset purchase targets unchanged earlier on Wednesday, as was largely expected, while easing COVID-19 related pressures on the economy.

While USD/EUR fell 0.1% to 1.1721, USD/GBP fell 0.1% to 1.3651, while the risk-sensitive USD/AUD rose 0.2% to 0.7252, rebounding from its low in three weeks