# Dollar eases from near 1-month high as Fed, Evergrande eyed Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2021-09-21 Category: TRADING Category URL: https://financedigest.com/category/trading Meta Title: Market Recap: Dollar Eases From Near One-Month High Amid Meta Description: Follow the latest trends as global markets react to the Evergrande uncertainty and await the Fed's policy decision. Stay informed with Reuters. URL: https://financedigest.com/dollar-eases-from-near-1-month-high-as-fed-evergrande-eyedhtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/2021-09-21t021036z1lynxmpeh8k021rtroptp4global-forex-1736837819887-compressed.jpg) By Chuck Mikolajczak NEW YORK (Reuters) – The U.S. dollar eased slightly from a near one-month high as global markets firmed somewhat on Tuesday a day after a risk-off mood dominated by solvency uncertainty of China’s Evergrande, while [investors awaited](https://www.financedigest.com/oil-steadies-after-dipping-on-china-outlook-investors-await-fed-clues.html "Oil steadies after dipping on China outlook; investors await Fed clues") the results of the Federal Reserve’s two-day policy meeting. After reaching its highest [level since](https://www.financedigest.com/optimism-levels-drop-to-low-of-17-percent-according-to-first-survey-since-banking-regulations.html "Optimism levels drop to low of -17 percent, according to first survey since banking regulations") Aug. 23 on Monday, the dollar straddled around the unchanged mark on the day, briefly moving [higher as early gains on Wall Street’s](https://www.financedigest.com/wall-street-stocks-power-higher-as-treasury-yields-and-dollar-ease.html "Wall Street stocks power higher as Treasury yields and dollar ease") benchmark equity indexes faded. Investors are looking toward the Fed’s policy announcement on Wednesday for any signs of when the [central bank](https://www.financedigest.com/dollar-skulks-at-eight-month-low-central-bank-meetings-in-focus.html "Dollar skulks at eight-month low, central bank meetings in focus") will begin to scale back its massive bond-buying program, in a week filled with policy statements expected from a host of central banks around the globe. The market was trying to get a sense of was this turnaround Tuesday going to last, and if we had that continued improvement of risk appetite the [dollar was going to pull back](https://www.financedigest.com/dollar-advances-as-strong-u-s-data-backs-higher-rates-backdrop.html "Dollar advances as strong U.S. data backs higher rates backdrop") even more here,” said Edward Moya, senior market analyst at OANDA in New York. “But there is just a lot of wait-and-see as far as what is going to happen with the Fed, what is going to happen with Evergrande. And right now if you are trying to make a dollar bet you really just want to wait until you get a better sense of what is going to happen with Evergrande and what the [Chinese government](https://www.financedigest.com/chinese-love-affair-with-manchester-property-to-strengthen-as-government-welcomes-new-investment.html "Chinese love affair with Manchester property to strengthen as government welcomes new investment") is going to do. The [dollar index fell 0.019% after reaching](https://www.financedigest.com/analysis-g7-fails-to-reach-intervention-deal-to-ease-pain-of-soaring-dollar.html "Analysis-G7 fails to reach intervention deal to ease pain of soaring dollar") a high of 93.455 on Monday, while the euro was down 0.01% to $1.1724. The greenback strengthened on Monday, along with other [safe-havens such as the yen and Swiss franc](https://www.financedigest.com/swiss-franc-grapples-with-safe-haven-identity-crisis-after-credit-suisse.html "Swiss franc grapples with safe-haven identity crisis after Credit Suisse"), as concerns about the fallout from the possible default of China Evergrande unnerved financial markets. Those concerns overshadowed efforts by Evergrande’s chairman to lift confidence in the embattled firm on Tuesday, as Beijing showed no signs it would intervene to stem any domino effects across the [global economy](https://www.financedigest.com/floods-other-water-related-disasters-could-cost-global-economy-5-6-trillion-by-2050-report.html "Floods, other water-related disasters could cost global economy .6 trillion by 2050 -report"). The offshore Chinese yuan [weakened versus the greenback to 6.4817 per dollar](https://www.financedigest.com/oil-up-2-as-dollar-weakens-on-small-us-fed-rate-hike.html "Oil up 2% as dollar weakens on small US Fed rate hike"). Before Evergrande’s debt crisis rattled markets, the [dollar had been supported ahead of the Fed](https://www.financedigest.com/dollar-pauses-for-breath-as-fed-swings-into-focus.html "Dollar pauses for breath as Fed swings into focus") meeting this week, with economists surveyed in a Reuters poll expecting policymakers to signal expectations of a tapering plan to be pushed back to November. The [Japanese yen](https://www.financedigest.com/japanese-yen-gains-as-ueda-set-to-be-named-next-boj-governor.html "Japanese yen gains as Ueda set to be named next BOJ governor") strengthened 0.13% versus the greenback, to 109.23 per dollar, while Sterling was last trading at $1.3658, up 0.01% on the day. The Canadian dollar was poised to halt three straight days of declines against the greenback, after Canadian Prime Minister Justin Trudeau was re-elected to a [third term](https://www.financedigest.com/analysis-how-chinas-xi-accumulated-power-and-why-it-matters-in-a-third-term.html "Analysis-How China’s Xi accumulated power, and why it matters in a third term") but failed to win a majority in the parliamentary elections. The Canadian dollar rose 0.06% [versus](https://www.financedigest.com/russian-rouble-nears-4-week-high-versus-dollar.html "Russian rouble nears 4-week high versus dollar") the greenback at 1.28 per dollar. In cryptocurrencies, bitcoin last fell 2.01% to $42,172.11. (Reporting by Chuck Mikolajczak; Editing by Andrea Ricci and Leslie Adler) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---