2014.10.2901:07:47UTC+00US dollar holds 3-day fall ahead of Fed monetary policy

The US dollar held a three-day plunge as cues on an askew US economic recuperation pressed investors to change their outlooks for interest rates next year ahead of Federal Reserve’s monetary policy today.

Against a basket of major currencies, the greenback was close to a one-week low following figures yesterday showed durable goods orders dropped. According to Commerce Department, bookings for goods that would last for at least three years dropped 1.3% following it fell 18.3% in August.

The Fed said last month it would end quantitative easing this month if the economy still improved.

“QE is coming to an end, but the economic outlook hasn’t changed, so there probably won’t be a change in the Fed’s statement. That’s a reason to sell the dollar,” said Masakazu Sato, Currency Adviser at Gaitame Online Co.

The currency traded at $1.2738 per euro from $1.2734, after erasing 0.7% in the last three days. It was slightly changed at ¥108.14.