US$ dips before Fed rate decision

London

THE US dollar inched down on Wednesday in the run-up to the Federal Reserve's policy statement later in the day, with an almost one per cent fall this week showing minimal expectations the Fed will ramp up its forecasts for future rises in interest rates.

The Fed is seen as all but certain to raise its main rate by a quarter point to 0.50-0.75 per cent. It will be chairwoman Janet Yellen's tone, and new forecasts for future rates, that will drive the market response.