The Australian dollar rose to the highest in almost two weeks against its U.S. counterpart before the Federal Reserve opens a two-day meeting amid speculation it will maintain bond purchases for the foreseeable future.
The dollar held declines against most of its major peers after U.S. gross domestic product increased less than forecast in the first quarter, adding to concern the world’s biggest economy is struggling to grow.
The euro dropped from a one-week high against the dollar as the euro area’s jobless rate rose to a record in March and inflation slowed, adding to signs the region is struggling to emerge from recession.
The dollar touched the lowest in more than a week versus the euro before the Federal Reserve begins a two-day meeting amid bets it will maintain its quantitative easing bond purchases for the foreseeable future.
Australia’s dollar touched a six- week low against its U.S. counterpart, extending losses after the biggest weekly drop in almost a year, as concern global growth is slowing dimmed the allure of higher-yielding currencies.
Australia’s dollar gained against most of its 16 major peers on speculation the Reserve Bank will hold interest rates unchanged and refrain from indicating any prospect that a reduction may soon be needed.