NEW YORK—The dollar rallied broadly as investors abandoned currencies closely tied to the pace of global economic growth after a report indicated slowing domestic consumption in China ahead of a Federal Reserve statement on the future path of U.S. monetary policy.
Investors turned to the perceived safety of the dollar ahead of the afternoon meeting of the Fed's rate-setting committee, which could announce on Tuesday new measures to stimulate a sagging U.S. economy.
"The old adage 'better safe than sorry' definitely applies," said Dan Cook, senior market analyst at IG Markets in Chicago of investors fleeing riskier currencies.
