Dollar at Highest Since August; Yen Falls After BOJ
The dollar rallied to the highest level in three months as the Federal Reserve curbed speculation of interest-rate cuts this year. The yen fell to the lowest since February as the Bank of Japan decision offered few hawkish signals.
The Bloomberg Dollar Spot Index climbed as much as 0.6% to the highest since Aug. 1; it curbed the move in later trade.
All currencies in the Group of 10 weakened against the dollar Thursday.
Donald Trump and Xi Jinping agreed to extend a tariff truce, roll back export controls and reduce other trade barriers.
Nomura no longer expects the Fed to cut rates in December, based on Chair Powell’s “abrupt shift in rhetoric” after this week’s rate cut.
USD/JPY rose as much as 1.1% to 154.45; BOJ Governor Kazuo Ueda said the risk of the central bank falling behind the curve in the fight against inflation isn’t increasing.
EUR/USD fell 0.3% to 1.1566
The European Central Bank left interest rates unchanged for a third meeting, with inflation in check and the economy continuing to grow.
USD/CHF rose 0.3% to 0.8020
The Swiss National Bank won’t shy away from stepping into currency markets if required, while interest rates are the key tool, according one its top officials.
AUD/USD declined 0.4% to 0.6550
Source : Bloomberg.com
