Dollar up in foreign exchange trading

The US dollar has risen in value in foreign exchange trading today (Monday September 21st), on the back of a new report showing continued growth in the country’s economy.

Trading of the dollar rose against the yen and against the dollar index, which tracks the currency against six of the country’s major trading partners.

Greenback strength also came ahead of a policy meeting at the Federal Reserve. Economists surveyed by Bloomberg News believe that the bank will keep its target rate for overnight loans in the range of zero to 0.25 per cent, the news provider said.

Currency strategist at Deutsche Bank in London Henrik Gullberg told the news agency: “Investors are keen to see to what extent the Fed will acknowledge the improvement in the recent economic data, and the market might be positioning for that.”

Meanwhile, sterling remained relatively low in trading, as concerns over the UK banking sector continue to affect confidence.