Dollar Flat as Experts Suggest Fed Tightening Unlikely to Provide Boost By Investing.com

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By Yasin Ebrahim     

Investing.com – The dollar was flat Tuesday, and experts suggest that the greenback could struggle to advance as the improved pandemic backdrop may sour investor appetite for the safe-heavens including the greenback.

The , which measures the greenback against a trade-weighted basket of six major currencies, fell 0.07% to 93.19

The U.S. dollar has been riding a wave of safe-heaven demand as investors contend with economic headwinds including the difficulties in China. But in the near term, “the U.S. dollar is expected to slip slightly lower as pandemic uncertainties gradually recede,” Desjardins said.  

While the Federal Reserve’s plan to tighten its monetary policy measures could help offset less favorable factors for the greenback, such as a wide trade deficit and a higher inflation, the boost to the dollar from Fed tightening isn’t expected to be as meaningful as many expect.

“The dollar is…

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