Dollar Steady as Yen Gains Ahead of BOJ Rate Move
A dollar gauge erased nearly all losses and steadied after falling to a session low in the aftermath of lower-than-expected US inflation data Thursday morning. The yen advanced heading into the announcement on rates by the Bank of Japan, which is widely expected to raise its benchmark rate Friday to the highest level in three decades.
USD/JPY fell 0.1% to 155.52
Governor Kazuo Ueda “will leave its current estimate of the neutral rate unchanged, while suggesting that there remains room for additional rate hikes, implying the possibility of multiple hikes ahead,” said Takeru Yamamoto, a trader at Sumitomo Mitsui Trust Bank in New York.
The Bloomberg Dollar Spot Index traded less than 0.1% lower after the CPI report, which was delayed by the federal government shutdown, making economists question the quality of data.
UR/USD fell 0.1% to 1.1725
The European Central Bank left interest rates unchanged for a fourth straight meeting as inflation hovers around target. The deposit rate was kept at 2% on Thursday — as predicted by all analysts in a Bloomberg survey.
GBP/USD advanced 0.1% to 1.3385
The Bank of England cut interest rates to the lowest in almost three years, while suggesting further decisions on easing policy will be a “closer call”.
Source: Bloomberg.com
