Dollar falls as risk appetite improves ahead of Fed meeting

The US dollar slipped again on Tuesday from a one-week high against a basket of its major peers, with traders awaiting the message Federal Reserve officials will deliver at Wednesday’s monetary policy meeting.

The dollar index, which measures the US currency against six rival currencies, including the euro, the pound and the yen, fell 0.12 percent to 111.41, losing 0.79 percent of the gains it made on Monday.

The index has been hovering around the 112 level since falling from a two-decade high of 114.78 at the end of September.

The Federal Reserve is widely expected to raise interest rates by 75 basis points on Wednesday, the fourth such increase in a row.

The Australian dollar rose 0.55% to $0.6432. The euro rose 0.21 percent to $0.99005.

Pressure continued on the European Central Bank to raise interest rates after data released on Monday showed that inflation in the euro zone came in higher than expected at 10.7 percent, a new record.

The British pound jumped 0.32% to $1.1503. The dollar fell 0.26 percent against the Japanese yen to 148.35.