The euro rose ahead of an anticipated vote on Germany's huge stimulus plan, while the U.S. dollar slightly declined Tuesday before the opening of the most recent Federal Reserve meeting.


The Dollar Index, which compares the US dollar to a basket of six other currencies, fell 0.1% to 102.890 at 5:00 ET (09:00 GMT), but it was still above the five-month low from the previous week.

Focus on Fed growth projections

Concerns that the uncertainty brought on by U.S. President Donald Trump's broad tariffs will have an impact on future economic activity have caused the dollar to weaken recently.
U.S. retail sales increased in February, according to data released on Monday, indicating that the economy grew in the first quarter, albeit slowly.

Following a revised 1.2% loss in January, retail sales increased by 0.2% last month, falling short of the 0.6% gain predicted.

The focus now shifts to the beginning of the most recent Federal Reserve policy-setting meeting, which is scheduled to end on Wednesday.

The publication of new economic projections, which will provide investors with the most concrete evidence to date of how U.S. central bankers perceive the likely impact of the Trump administration's policies on the economy, is likely to garner attention as the U.S. central bank is widely expected to maintain rates unchanged.

In a note, analysts at ING stated that the Fed, which will announce interest rates tomorrow, does not appear to be in a position to provide much relief to risk sentiment because growing inflation expectations still call for caution on rate decreases.

The German debt vote is pending.

Ahead of a planned parliamentary vote on Germany's big stimulus plan, the EUR/USD exchange rate in Europe increased by 0.3% to 1.0951, trading close to its best level since October.

On Monday, Germany's constitutional court dismissed fresh opposition party complaints to the incoming coalition government's attempt to force a significant public borrowing program through the departing legislature.

Additionally, traders are waiting for updates regarding the phone conversation between Russian President Vladimir Putin and U.S. President Donald Trump regarding a possible truce in the conflict in Ukraine.

"EUR/USD is once again aiming for 1.100. Given that the Fed might not be able to cause much more repricing in the USD curve, we are not certain that there is enough momentum for a clear break higher. However, the pair might rise beyond 1.0950 today, according to ING.

For the first time since November, the GBP/USD exchange rate surpassed the 1.30 mark, rising 0.1% to 1.3001.

After inflation slightly increased last month, it is generally anticipated that the Bank of England would leave interest rates steady on Thursday.

Yen falters before the BOJ's ruling

Ahead of Wednesday's conclusion of the most recent Bank of Japan meeting, the USD/JPY increased 0.3% to 149.70 in Asia.

Despite growing inflationary pressures, the Japanese central bank is anticipated to keep the current interest rate at 0.5% this week because officials are worried about escalating trade tensions brought on by U.S. President Donald Trump's tariffs.

Following China's announcement on Sunday of a comprehensive "special action plan" to boost domestic consumption, which aims to revive economic development amid recent headwinds, the USD/CNY traded 0.1% down to 7.2234, essentially unchanged.