Indiana Grain Company, LLC

Posted: 09/23/09

By: tomgrisafi

The dollar hovered near a one-year low against a basket of major currencies on Wednesday as investors braced for the close of a Federal Reserve meeting that's expected to keep U.S. interest rates at a record low.

Dealers were on alert, though, for signs that the Fed may curtail some of the programs that over the last year have injected trillions of dollars into the troubled banking system, and that was keeping exchange rate moves somewhat subdued.

News on Tuesday from other central banks suggested some policymakers are at least thinking about exit strategies from the ultra-loose monetary policies that have reigned of late.

Sterling gained as minutes from the last Bank of England meeting showed officials did not press to increase asset purchases, which some traders feared they would, while the Norwegian crown rallied after the Norges Bank left interest rates on hold but said it considered raising them.

Source: NY Times

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