© Reuters.  The dollar edged down on Tuesday.© Reuters. The dollar edged down on Tuesday.

Investing.com – The dollar was flat on Tuesday as investors look ahead to the Federal Reserve’s monetary policy statement on Wednesday.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was flat at 94.38 as of 11:48 AM ET (3:48 PM GMT).

United States President Donald Trump is also expected to announce later this week who he will choose to lead the Federal Reserve. Reports have pointed to Federal Reserve Governor Jerome Powell as being the most likely candidate and a bit more dovish than the other potential nominees.

The dollar was up against the yen, with USD/JPY rising 0.27% to 113.47 after it fell to a two-week low of 112.96 overnight. There was little reaction after the Bank of Japan said it would keep monetary policy on hold.

Meanwhile in Europe, EUR/USD inched forward 0.03% to 1.1654, despite data showing that the annual rate of inflation slowed to 1.4% in October. Other data showed that the economy posted its fastest annual growth rate since the financial crisis, while unemployment fell to 8.9% in September, the lowest since 2009.

Meanwhile sterling continued to climb amid speculation that the Bank of England will raise interest rates on Thursday. GBP/USD was up 0.60% to 1.3286.

The Australian and New Zealand dollar continued to fall. In New Zealand, data showed that the ANZ Business Confidence Index dropped to a two-year low of negative 10.1 in October.

AUD/USD fell 0.33% to 0.7662 while NZD/USD was down 0.45% to 0.6843.

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