Key facts
- Dollar stabilized after pressure from AI stock selloff.
- Focus is on central bank hints for economic outlook and rate path.
- ECB's Bank Lending Survey showed impact of rate hikes.
- Japan's finance minister ready to take decisive currency market action.
The dollar gained against major currencies on Tuesday as markets braced for policy decisions from the Federal Reserve, European Central Bank, and Bank of Japan. The greenback found stability after a recent selloff in AI stocks and pressure from equity market distress, high oil prices, and fiscal stress in France. The Federal Reserve is expected to hold rates steady on Wednesday, with focus on forward guidance. The euro was on track for its worst monthly performance against the dollar in October, impacted by energy costs and French fiscal concerns. Japan's finance minister signaled readiness to intervene in currency markets.