The dollar consolidates, the yen weakens as the risk sentiment improves

On Wednesday, the dollar is little changed so far against most major currencies, but rose against the yen, as optimistic earnings on Wall Street improved investor sentiment.

The three major Wall Street indices rose by more than 2%, because blue chips provided high incomes, which indicates that the recovery of the US economy is in full swing, despite the impact of rising interest rates and tensions in world trade.

The data on Tuesday showed that industrial production in the United States increased in September for the fourth month in a row, helped by growth in manufacturing and mining, but growth rates declined sharply in the third quarter.

The dollar index, an indicator of its value against six major currencies, is trading at 95.08 on Wednesday.

The dollar rose 0.13% against the Japanese yen , which was trading at Y112.40 against the dollar. The yen rose seven of eight sessions until Tuesday and reached a monthly high of Y111.61 on Monday.

Buyers expect further signals for the dollar from the minutes of the September meeting of the Federal Reserve System, which will be published later today. Investors are looking for clues about how the interest rate will increase this year.

Interest rate futures indicate a 77% chance that the Federal Reserve will raise interest rates again at the December meeting, according to the CME Group FedWatch Tool analytic report.

The British pound is trading at $ 1.3187 on Wednesday after it rose 0.25% on Tuesday. While growth was supported by stronger than expected data from the UK labor market, investors still doubt that a European Union summit on Wednesday will provide significant progress on the issue of NI border.