After exhibiting weakness in the previous three sessions, the U.S. dollar held steady on Tuesday, ahead of the release of the minutes of the Federal Reserve’s recent monetary policy meeting.
Slightly waning optimism about a trade deal between the U.S. and China following reports about U.S. President Donald Trump’s reluctance to roll back tariffs on Chinese goods.
The dollar index, which was down at 97.75 in the European session, recovered to 97.89, and despite staying a bit sluggish before noon, edged higher later on and was last seen at 97.85, up 0.06% from previous close.
Against the Euro, the dollar was down at 1.1078, after closing at 1.1071 a unit of Euro in the previous session.
Against Pound Sterling, the dollar was trading at 1.2924, as against Monday’s close of $1.2953.
The Japanese Yen was trading at 108.54 a dollar, recovering from 108.67 a dollar on Monday.
The dollar gained nearly 0.5% against the loonie at 1.3268, and about 0.1% against Swiss franc at 0.9905.
The Aussie, however, was stronger with the pair trading at 0.6826.
The Fed is scheduled to release its monetary policy meeting minutes due tomorrow.
The Fed had reduced its interest rates for the third time at its meeting in late October. tober 29-30.
The minutes could provide clues about the central bank’s likely stance on interest rates in the coming months.
In economic news today, a report from the Commerce Department showed a substantial rebound in new residential construction in the month of October.
The Commerce Department said housing starts surged up by 3.8% to an annual rate of 1.314 million in October after plunging by 7.9% to a revised rate of 1.266 million in September.
Economists had expected housing starts to jump by 5.1% to a rate of 1.320 million from the 1.256 million originally reported for the previous month.
The report also said building permits spiked by 5% to an annual rate of 1.461 million in October after tumbling by 2.4% to a revised rate of 1.391 million in September.
Economists had expected Building permits to edge down by 0.1% to a rate of 1.385 million from the 1.387 million originally reported for the previous month.