The euro made gains yesterday as investors sold the dollar ahead of the FOMC rate statement

The single currency broke over the 1.4800 mark yesterday, pushing up its yearly high against the greenback, as investors returned to selling the dollar.

• Rallying equity markets renewed signs that the global economy is set for recovery, diminishing sentiment toward the dollar, and spurring investors to buy higher-yielding assets.
  
• There are currently a number of factors which continue to work against the dollar, notably the improving economic conditions and the strengthening of risk appetite in the market, which have supported the euro’s climb.
  
• The US currency also weakened on speculation that the G20 meeting in Pittsburgh this week will call for a reduction in global trade imbalances that may cause further gains for currencies against the dollar.
  
• Trading on the dollar has slowed this morning with the price currently holding at around yesterday’s closing price, as investors await the Fed interest rate statement, released today at 19:15BST.
  
• Any sign that the central bank intends to continue its monetary easing measures beyond this year could send the dollar plummeting further.