The US dollar remained weak against most major currencies due to low demand ahead of the FOMC policy announcement due later in the day. The Federal Reserve is expected to keep interest rates unchanged near zero percent. A recent spate of weak US economic data has led to most economists forecasting that the US central bank would hold fire at this meeting and keep rates where they have been since 2008.
The dollar was steady against the yen, trading above 120.28 and below 120.58.
The euro rose throughout the session due to the broadly weaker dollar to reach as high as 1.1095 while the pound rose to 1.5346.
The Riksbank’s announcement to expand quantitative easing was one of the most eye-catching news of the day. Sweden’s central bank expanded its bond purchase programme by 65 billion Swedish crowns to a total of 200 billion crowns and held the benchmark repo rate at -0.35% as expected.
The euro/crown pair fluctuated between 9.3351 and 9.4319 after the announcement from the Riksbank before easing down to 9.3118. The dollar/crown pair traded between 8.4526 and 8.5429 before falling to 8.3963.
Gold prices rose to the highest level in almost two weeks to 1182.82 as the dollar weakened in anticipation of the Fed.
Oil prices rose after weekly data from the US Energy Information Administration showed gasoline and distillate stockpiles fell by more-than-expected last week. Crude oil rallied to a high of $45.96 a barrel.