Dollar slips on foreign exchange markets

The US dollar slipped in value in foreign exchange trading today (September 23rd) as traders awaited the outcome of the latest Federal Reserve meeting.

Traders also remained cautious ahead of the Pittsburgh summit of G20 leaders.

Values for the dollar hovered close to one-year lows as investors believe the Fed will signal its intention to keep down the cost of borrowing.

Lee Hardman, a currency strategist at Bank of Tokyo-Mitsubishi in London, told the Bloomberg news agency: "The dollar is likely to remain weak in the near term. What's driving the dollar lower is the exceptionally loose liquidity conditions, and this encourages its use as a funding currency."

Rising confidence of the onset of a global recovery has also helped to draw down the dollar, as investors' appetite for riskier assets continues to grow.

Belief that the G20 summit will hear calls for economic stimulus plans to remain in place may also be giving traders the optimism to invest in riskier assets, Reuters reports.