2020.04.2821:38:00UTC+00Dollar Exhibits Weakness Against Peers Ahead Of Fed Policy Statement

The U.S. dollar continued to exhibit weakness against its peers, mostly moving in a tight range ahead of the Federal Reserve's monetary policy statement, due tomorrow.

Traders were also looking ahead to the European Central Bank's policy move on Thursday, in addition to reacting to news about the coronavirus pandemic and re-opening of businesses in several virus hot spots in Europe and some select states in the U.S.

A report from the Conference Board showing a sharp deterioration in U.S. consumer sentiment in the month of April also impacted the dollar's movements.

The dollar index slipped to a low of 99.45 early on in the session, but recovered gradually to 99.99 by late afternoon, cutting down its loss to just around 0.05%.

Against the Euro, the dollar weakened to $1.0875 from $1.0829 late Monday.

Against pound sterling, the dollar dropped to $1.2474 after having traded at $1.2431 a sterling on Monday.

The Japanese Yen strengthened to 106.64 a dollar, firming up from previous close of 107.25 yen a dollar.

The Aussie was firmer at 0.6502 a dollar, rising from 0.6465 overnight.

The dollar was weak against the loonie as well with a unit fetching C$1.3960, compared to C$1.4034 on Monday.

The Swiss franc firmed up to 0.9725 a dollar, from previous close of 0.9752 a dollar.

A number of states such as George, South Carolina and Colorado have already stated reopening, while other states like New York have announced plans to begin reopening in the coming weeks.

President Donald Trump's administration has also unveiled a plan to ramp up testing, which experts have said is the most important step toward reopening the economy.

The Conference Board's report showed consumer confidence deteriorated significantly in the month of April. The report said its consumer confidence index plunged to 86.9 in April after tumbling to a downwardly revised 118.8 in March. Economists had expected the index to plummet to 90.0 from the 120.0 originally reported for the previous month.