US Dollar Plunges Ahead of Fed Meeting

• US Dollar Plunges Ahead of Fed Meeting

The US dollar plunged against counterparts on Wednesday as investors await Federal Open Market Committee, FOMC, economic projection and rates decision.

The greenback fell 0.7 percent against the Pound to $1.3593 after data showed U.K. retail sales surprisingly rose to 4-month high in August.

Euro continued to appreciate against the US dollar, rising 0.11 percent to trade above the $1.2000 price level for the first time in a week on Wednesday.

However, haven currencies are jumping ahead of the Fed meeting. The Australian dollar climbed by 1 percent against the US dollar to 0.8087. This is partly boosted by the positive minutes of the Reserve Bank of Australia that projected continuous economic growth through the fourth quarter and growing Chinese economic outlook.

The Kiwi jumped 1.2 percent against the US dollar to 0.7405, making it the highest gain among haven currencies.

The US dollar was weighed upon by Donald Trump’s comments at the United Nation Summit on Tuesday as it deepens uncertainties ahead of the Federal Reserve meeting on Wednesday.

Investors expect the FOMC to maintain current rates and announce the commencement of balance sheet normalization.