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US dollar falls ahead of Fed meeting

U.S. one-hundred dollar bills are seen in this photo illustration at a bank in Seoul August 2, 2013. Picture taken August 2, 2013. South Korea's foreign reserves jumped to a record high in July, the central bank said on August 5, 2013, appearing to support traders' suspicions of dollar-buying intervention by currency authorities last month. The reserves stood at $329.71 billion at the end of July, up $3.27 billion from June, the Bank of Korea said in a statement, attributing the rise to management gains and the appreciation of the euro in July, which the Bank of Korea said was up 1.8 percent against the dollar last month. REUTERS/Kim Hong-Ji (SOUTH KOREA - Tags: BUSINESS)
U.S. one-hundred dollar bills are seen in this photo illustration at a bank in Seoul August 2, 2013. Picture taken August 2, 2013. South Korea's foreign reserves jumped to a record high in July, the central bank said on August 5, 2013, appearing to support traders' suspicions of dollar-buying intervention by currency authorities last month. The reserves stood at $329.71 billion at the end of July, up $3.27 billion from June, the Bank of Korea said in a statement, attributing the rise to management gains and the appreciation of the euro in July, which the Bank of Korea said was up 1.8 percent against the dollar last month. REUTERS/Kim Hong-Ji (SOUTH KOREA - Tags: BUSINESS)

New York: The US dollar declined against most major currencies on Monday as investors were awaiting the closely-watched Federal Reserve meeting due to open on Tuesday.

In late New York trading, the euro rose to $1.0993 from $1.0956 of the previous session, and the British pound climbed to $1.3125 from $1.3093, Xinhua news agency reported.

The Australian dollar went up to $0.7469 from $0.7463.

The dollar bought 105.78 Japanese yen, lower than 106.09 yen of the previous session. The dollar fell to 0.9860 Swiss francs from 0.9887 Swiss francs, and it inched up to 1.3223 Canadian dollars from 1.3154 Canadian dollars.

Analysts said although investors don’t expect the central bank officials to raise interest rates at the upcoming meeting, recent positive economic data has nonetheless bolstered market speculation for a rate-hike later this year, Xinhua news agency reported.

The seasonally adjusted Markit Flash US Manufacturing Purchasing Managers’ Index (PMI) rose from June’s reading of 51.3 to 52.9 in July, the highest level in a year, pointing to a solid improvement in overall US business conditions.

Moreover, US Commerce Department reported last week that privately-owned housing starts in June were at a seasonally adjusted annual rate of 1.189 million units, 4.8 percent above the revised May estimate. The latest reading also beat market consensus of 1.170 million.

The dollar index, which tracks the greenback against six major peers, has been lingering at four-month highs in the previous sessions. It inched down mildly of 0.19 percent to register at 97.282 in late trading on Monday.

IANS

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