Dollar steadies as markets wait for Fed, ECB

Singapore, April 28

The dollar steadied on Tuesday as currency markets entered a holding pattern ahead of US Federal Reserve and European Central Bank meetings later this week and as a fresh tumble in oil prices cautioned against risk taking.

The greenback was flat against most majors, apart from a New Zealand dollar weighed down by expectations of further monetary easing.

A 5% drop in benchmark Brent crude and a 13% drop in US crude — an ill omen for global demand — also put the brakes on a Australian dollar that has recovered 17% from a 17-year low struck last month. [AUD/]

Markets are looking to any sort of forward guidance from the Fed, which meets later on Tuesday and is due to issue a statement on Wednesday, and for possible further easing in Europe. The ECB meets on Thursday. — Reuters