The dollar index hit its highest level since August 16. The euro lost 0.3% and the yen also depreciated.
He dollar in the world rose this Wednesday to two-month highsahead of the release of minutes from the Federal Reserve’s (Fed) September decision to cut interest rates by 50 basis points.
He dollar indexwhich measures the price of the greenback against a basket of currencies including the yen and the euro, It hit its highest level since August 16, although it later gained 0.3% to 102.76.
The concern about demand from China has been a recurring theme all week, amid disappointment over the follow-up to last month’s stimulus measures. On Wednesday, the Australian and New Zealand currencies were particularly affected.
Although the minutes of the latest meeting of the Federal Open Market Committee might show how heated the debate over the larger-than-expected cut was, they will be somewhat out of date after Last Friday’s strong nonfarm payrolls data caused markets to recalculate their near-term Fed rate cut expectations.
He euro It extended its recent fall to two-month lows against the greenback, and lost 0.3% to US$1.0953. The dollar/yen parity It rose 0.6% to equal Monday’s 149.10 yen, its highest level since August 16.
The yen has been shaken since Japan’s new prime minister, Shigeru Ishibaknown for being a critic of expansionary monetary policy, surprised markets with his recent statements that the country is not prepared for further rate hikes.
Ishiba has summoned early elections for October 27ahead of that month’s Bank of Japan monetary policy meeting and the US presidential election on November 5.
Operators are also awaiting the publication of the US Consumer Price Index (CPI) for September, which will take effect this Thursday.
Source: Ambito
