Dollar Extends Rally; Euro Hits Lowest Since August
The dollar rallied for a third straight day Friday, making October the second-best month this year, the euro declined to the lowest since early August. The yen steadied after two days of declines.
The Bloomberg Dollar Spot Index climbed 0.2%.
Federal Reserve Bank of Dallas President Lorie Logan said she didn’t support the US central bank’s decision to cut interest rates this week and will likely find it appropriate to hold rates steady at the next meeting because inflation remains too high.
USD/JPY steady at 154.11; inflation in Tokyo rose at a faster pace in October, adding to arguments for a rate hike.
Japan’s better-than-expected industrial output in September also supported the yen earlier.
Finance Minister Satsuki Katayama said the government is monitoring the yen with a strong sense of urgency.
EUR/USD fell 0.3% to 1.1529
Euro-area inflation eased slightly but stayed above 2%, backing the European Central Bank’s decision to keep borrowing costs where they are.
French inflation slowed further below the ECB’s target in October as energy costs dropped and food-price increases eased.
GBP/USD fell as much as 0.4% to 1.3097, lowest since April 14; it later curbed the move to trade at 1.3142, 0.1% lower on the day.
Barclays Plc said traders are underestimating the chance of an interest rate cut by the Bank of England next week.
AUD/USD was trading 0.2% lower at 0.6544, set for a 1% monthly drop.
Source : Bloomberg.com
