Dollar Steady as Government Shutdown Set to End
A Bloomberg gauge of the dollar slid, precious metals climbed and most Group-of-10 currencies traded in tight ranges as traders await fresh macro catalysts. The Aussie dollar led gains after Australia’s central bank hiked interest-rates.
The Bloomberg Dollar Spot Index falls 0.3% as gold and silver prices rise, ending steep two-day losses.
The dollar held steady after the House passed legislation Tuesday afternoon to end the partial government shutdown.
US 10-year yields little changed at 4.27%.
AUD/USD rises 0.9% to 0.7008 after the Reserve Bank of Australia raised its cash rate by an expected 25 basis points.
Earlier, the Aussie rose by as much as 1.5% against the greenback to 0.7050 before paring some of those gains.
Australia’s central bank said in its policy statement that inflation is likely to remain above target for some time, which drove gains in the Aussie dollar and bond yields.
The moves pared after Governor Michele Bullock said in the press conference the board will be cautious on rate hikes, as it was when easing.
USD/JPY reverses losses to rise 0.1% to 155.754.
Japan’s Finance Minister Satsuki Katayama said that Prime Minister Sanae Takaichi wasn’t overly highlighting the benefits of a weak yen at the weekend.
UR/USD rises 0.1% to 1.1808.
French inflation unexpectedly eased to a five-year low, staying well short of the European Central Bank’s 2% target as energy prices fell.
GBP/USD rises 0.1% to 1.3681.
Source: Bloomberg.com
