Dollar edges up but stays low amid Fed worries

The US dollar edged up Monday but still stays at low levels against major currencies amid worries that the Federal Reserve would keep the scale of the quantitative program. The dollar index, which tracks the greenback against six major currencies, rose about 0.2 percent to 79.31, still close to the nine-month low level reached last Friday. In the previous session, the disappointing consumption data boosted market speculation that the Fed would keep the easing measures intact until March of next year. U.S. consumer sentiment fell to 73.2 in October, the lowest since December 2012, said a survey by Thomson Reuters/ University of Michigan last Friday. The Fed will hold its October policy meeting on Tuesday and Wednesday. Economists in general believe the central bank would maintain its current policy given the impact of the U.S. government shutdown and tepid economic data. Economic data released Monday was mixed. U.S. industrial production increased 0.6 percent in September following a gain of 0.4 percent in August, posting the largest gain in seven months, the Fed said Monday. U.S. pending Home Sales Index dropped 5.6 percent in September from the previous month, the lowest level since December 2012, the National Association of Realtors said Monday. In late New York trading, the euro dipped to 1.3087 dollars from 1.3808 dollars of the previous session, and the British pound decreased to 1.6159 dollars from 1.6174 dollars. The Australian dollar slipped to 0.9581 dollar from 0.9583 dollar. The dollar bought 97.67 Japanese yen, higher than 97.35 yen of the previous session. The greenback moved up to 0.8943 Swiss franc from 0.8927 and went down to 1.0441 Canadian dollars from 1.0452.