Dollar Weakens as Yen Outperforms, Loonie Lags
The dollar fell versus all currencies in the Group of 10 amid month-end flows, with the euro rising after the European Central Bank’s Isabel Schnabel said it needs to be wary of cutting interest rates too far. The yen was the best performer in the group, while Canada’s dollar was lagging behind peers.
The Bloomberg Dollar Spot Index traded 0.6% weaker Wednesday; it was at the lowest level in a week.
The Federal Reserve’s preferred measure of underlying inflation accelerated in October from a year ago, helping explain policymakers’ more cautious approach to lowering rates.
EUR/USD rose 0.7% to 1.0562. EUR/JPY fell 0.7% to 159.52 Wednesday. USD/JPY falls 1.3% to 151.07
NZD/USD climbed 1.1% to 0.5895, one-week high; RBNZ cut rates by half a percentage point as anticipated by a majority of economists surveyed by Bloomberg and signaled a more hawkish-than-expected outlook for 2025.
AUD/USD rose 0.3% to 0.6496; Australia’s CPI indicator for October advanced 2.1% from a year earlier, below economists’ estimate of a 2.3% increase, data from the Australian Bureau of Statistics showed.
GBP/USD up a third day, gains 0.8% to 1.2674.
Source: Bloomberg
