Dollar Heads to Monthly Loss as Fed Meets

The dollar gained today, but was heading to monthly loss as speculations that the Federal Reserve will keep its monetary stimulus hurt the currency.

Analysts predicted that today’s report will show slowdown of US economic growth from 1.8 percent in the first quarter of 2013 to 1.1 percent in the second quarter. The Fed has started its policy meeting yesterday and will conclude it today. No major changes to the policy are expected, but it will be interesting to see if the central bank’s statement reveals any detail about quantitative easing tampering.

The dollar lost 1.8 percent versus the euro over July. It also fell 0.8 percent against the pound and dropped 1.1 percent against the yen during the month.

EUR/USD fell from 1.3259 to 1.3251 as of 3:03 GMT today. GBP/USD went down from 1.5335 to 1.5327 and USD/JPY rose from 97.93 to 98.08.

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