Dollar Strengthens Moderately

The dollar exchange rate is moderately strengthening against other world currencies on Tuesday morning, it follows from the trading data. Investors expect the publication of statistics from the US later in the course of trading.

As of 7.53 Moscow time, the euro exchange rate against the dollar fell to 1.0589 dollars from the previous closing level of 1.0607 dollars, the dollar against the yen rose to 136.26 yen from 136.2 yen. The dollar index (the exchange rate against a basket of currencies of six countries – US trading partners) increased by 0.13%, to 104.81 points.

U.S. consumer confidence data from the Conference Board will be released later on Tuesday. Analysts believe that the indicator rose to 108.5 points in February from 107.1 points in January.

At the same time, traders continue to monitor the actions of the US Federal Reserve System (FRS). According to CME Group, 76% of analysts expect a new increase in the key rate in March – again by 25 basis points, to 4.75-5% per annum. At the same time, 24% expect an increase of already 50 basis points.

The Fed began a cycle of rate hikes last year. Investors are now watching the pace of the rate increase, also assessing the possible timing of the easing of monetary policy. In February, the rate was increased by 25 basis points, in December – by 50 bp, in November – by 75 bp.

Traditionally, an increase in the rate supports the exchange rate of the national currency.