2019.09.1717:20:00UTC+00Dollar Exhibits Weakness Ahead Of Fed Policy

The U.S. dollar was notably lower on Tuesday, ahead of the Federal Reserve's monetary policy statement.

The Fed, scheduled to announce its policy on Wednesday, is widely expected to cut interest rate by 25 basis points.

The dollar index dropped to a low of 98.19, and was last seen at 98.23, down nearly 0.4% from Monday's close.

Against the Euro, the dollar shed more than 0.6%, at 1.1073, down from previous close of $1.0004 a unit of euro.

The British Pound Sterling was up 0.55% at $1.2499. The yen was moving around 108 a dollar for much of the day's session.

The dollar was notably lower against the loonie and aussie as well, while it gained some ground against Swiss franc.

According to a report released by the Federal Reserve today, U.S. industrial production rebounded by much more than anticipated in the month of August, after seeing a modest decline a month earlier.

The report said industrial production climbed by 0.6% in August after edging down by a revised 0.1% in August. Economists had expected industrial production to rise by 0.2% compared to the 0.2% dip originally reported for the previous month.

A report from the National Association of Home Builders showed an unexpected improvement in U.S. homebuilder confidence in the month of September.

The report said the NAHB/Wells Fargo Housing Market Index inched up to 68 in September from an upwardly revised August reading of 67. Economists had expected the index to come in unchanged compared to the 66 originally reported for the previous month.