The dollar rebounded slightly from a 14-month low as Treasury yields rose while markets awaited this week’s Federal Reserve meeting and kept a wary eye on Capitol Hill meetings that involve members of the Trump administration.
The greenback was mixed versus its G-10 peers and the Bloomberg dollar index saw a gain of less than 0.1 percent. Flows were described by traders in London and Toronto as modest amid the elevated event risk. With Capitol Hill appearances Monday and Wednesday that include some of President Trump’s inner circle, concern is over whether developments may further impede the administration’s fiscal agenda. At the same time, the Fed is expected to keep rates and policies on hold, though it may elaborate on balance-sheet reduction or the timing of any future rate increases.
