·The dollar held firm against major currencies on Wednesday as traders look to whether the U.S. Federal Reserve will indicate faster monetary tightening this year, with the first rate increase of almost unanimously expected later in the day.2018 The dollar index was steady at 90.28, after having risen to 90.446 on Tuesday, an almost three-week high. The index has, however, broadly been in a holding pattern between 90.934 and 89.399 this month, waiting for clarity on whether the policy-setting Federal Open Market Committee (FOMC) will forecast four rate hikes this year, instead of the median three hikes seen in December’s quarterly forecast. The two-year yield jumped to 9-1/2-year high of 2.349 percent on Tuesday. As the U.S. currency firmed, the euro traded at $1.2261, having fallen 0.78 percent on Tuesday and hitting a near three-week low of $1.2240. Against the yen, the dollar stood at 106.46 yen, after Tuesday’s gains of 0.41 percent, though trading was slow due to a public holiday in Tokyo. ·Fed officials are expected to raise interest rates Wednesday, but it's not clear they will do much to resolve the debate in markets about how many more hikes are coming this year or next.The Fed has forecast three hikes for this year, but some economists expect it to add another. The market has priced in three hikes, but the question is whether Federal Reserve officials will signal a fourth when they release their latest forecasts Wednesday afternoon. That could result in a jump in bond yields and a stock market sell-off.One thing the markets do seem to agree on is that the tone of Fed Chairman Jerome Powell's first meeting will be decidedly hawkish, and the Fed will reinforce that it sees an improved economy and it plans to continue raising interest rates.·South Korean President Moon Jae-in said on Wednesday a three-way summit with North Korea and the United States is possible and that talks should aim for an end to the nuclear threat on the Korean peninsula.·China will actively take measures to safeguard China’s and its industries’ interests, vice commerce minister said in response to United State’s trade investigations.·Business confidence among Asian companies rose in the first quarter to the highest level in seven years, a Thomson Reuters/INSEAD survey showed, as a fresh surge by the Chinese economy offset concerns about rising trade barriers.The Thomson Reuters/INSEAD Asian Business Sentiment Index .TRIABS RACSI, representing the six-month outlook of 67 firms, advanced one notch to 79 for the January-March quarter compared with three months before.Thailand, the Philippines and Malaysia saw robust jumps in sentiment, showing that many countries in Asia continue to benefit from accelerating global growth. In particular, China has seen exports soar, up 45 percent in February to mark their fastest growth in three years. ·CNBC survey: say Trump trade policies negative for growth CNBC survey: say Trump trade policies negative for growth 63%63% The Fed will likely upgrade its view of the economy when it meets this week, but it's unlikely to publicly discuss one of the bigger risks for the economy — potential trade wars.At the Fed's two-day meeting, which begins Tuesday, policymakers are expected to announce a quarter-point interest rate hike and release new economic and interest rate forecasts Wednesday afternoon.But economists say the central bank will probably not even mention the trade issues that are worrying markets and could potentially become a bigger issue for the economy if President Donald Trump continues to take actions against trading partners. Some economists, however, say the Fed should discuss Trump's tariffs and the potential for trade wars, but there is not enough information for the Fed to assess the impact on the economy and it will stay away from the topic.·Japan's central bank wants the country's inflation rate to hit percent by fiscal year , but it is less likely to happen if the yen continues to strengthen, said Credit Suisse's chief economist for Japan.22019 Currently, Japan is still far from its target with the core consumer inflation rate at 0.9 percent in January. ·Oil prices edged up on Wednesday, lifted by tensions in the Middle East and healthy demand, although rising U.S. output continued to weigh on markets. U.S. West Texas Intermediate (WTI) crude futures CLc1 were at $63.69 a barrel at 0744 GMT, up 15 cents, or 0.2 percent, from their previous close. Brent crude futures LCOc1 were at $67.56 per barrel, up 14 cents, or 0.2 percent.
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