US interest rate rise 2015: Dollar droops ahead of the Federal Reserve's big decision

Clara Guibourg
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The Fed will make its decision tomorrow (Source: Getty)

The dollar tumbled with less than a day to go until the Federal Reserve makes its big decision, falling one per cent against the pound.

With the dollar dropping against 15 of the 16 major currencies tracked by Bloomberg, the biggest winners were the pound, gaining one per cent, and the South African rand, gaining 1.3 per cent.

Even the embattled Brazilian real went up 0.7 per cent against the dollar.

The uncertainty over the Fed’s rate decision has held markets and currencies captive for several weeks: To hike or not to hike?

Until recently the Fed’s head Janet Yellen was broadly expected to raise rates from the record-low they’ve held at for the past seven years.

Now, analysts and economists are divided, after mixed signals from recent economic data, as well as the market turmoil following China’s stock market rout on Black Monday.

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