Dollar Posts Strong Gains Against Other Major Currencies

(RTTNews) - The U.S. dollar climbed higher against major counterparts on Tuesday with traders looking ahead to the Federal Reserve's interest rate decision amid signs of a slowing economy.

The Fed, which will conclude its monetary policy meeting on Wednesday, is widely expected to raise rates by 75 basis points. A section of analysts, however, expect a hike of 100 basis points.

In economic news today, data from the Commerce Department showed new home sales plunged by 8.1% to an annual rate of 590,000 in June after jumping by 6.3% to a revised rate of 642,000 in May. Economists had expected new home sales to tumble by 5.2% to an annual rate of 660,000 from the 696,000 originally reported for the previous month.

With the bigger than expected decrease, new home sales slumped to their lowest annual rate since hitting 582,000 in April 2020.

A separate report released by the Conference Board showed consumer confidence in the U.S. deteriorated by more than expected in the month of July.

The Conference Board said its consumer confidence index slid to 95.7 in July from a downwardly revised 98.4 in June. Economists had expected the index to drop to 96.8 from the 98.7 originally reported for the previous month.

The dollar index surged to 107.28, gaining more than 0.75%.

Against the Euro, the dollar is trading at $1.0119, firming from $1.0220.

The dollar is slightly stronger against Pound Sterling at $1.2030, compared with the previous close of $1.2045.

Against the Japanese currency, the dollar has firmed, fetching 136.86 yen a unit, up from 136.67 yen.

The dollar has strengthened to 0.6936 a unit of the Australian currency, gaining from 0.6955.

The Swiss franc is stronger against the dollar at CHF 0.9630, firming from CHF 0.9645.

The Loonie has weakened to $1.2884, dropping from $1.2848 a dollar, as oil pared early gains and settled lower.