Dollar Tumbles Before Fed Meeting Against Sudden Rise in Yen and “Australian”

The dollar fell from a level near a week-long high against a basket of major rival currencies on Wednesday as traders and investors eagerly await the Federal Reserve’s expected interest rate decision, which will give guidance on the future course of policy. monetary.

The yen was the currency with the best performance and saw a sudden rise in JST noon as investors braced themselves for possible action as the Fed meeting approached.

The risk-sensitive Australian and New Zealand dollar also rallied strongly, driven by the rally in Chinese equity markets.

The dollar index, which measures the performance of the US currency against a basket of six competing currencies, including the yen, euro and pound, fell 0.14% to 111.32, but did not retreat much after the peak reached Tuesday, when it reached 111.78 , the highest since 25 October.

The dollar index has risen over 15% so far questyear, as the US central bank drastically hiked interest rates, which plunged other currencies and put pressure on the global economy.

The yen fell against the dollar, prompting the Ministry of Finance and the Bank of Japan to step in to support the currency in September for the first time since 1998. The Japanese currency suddenly jumped about half the yen today, Wednesday, to 147. , 4 per dollar, and the dollar fell against it in the last trade by 0.44% to 147,575 yen.

Meanwhile, the euro was up 0.14% to $ 0.9887 but is still close to the lowest level in one week recorded in the previous session at $ 0.98535.

The pound was up 0.24% to $ 1.1513, but was not far off Tuesday’s one-week low of $ 1.14365.

The Australian dollar was up 0.43% to $ 0.6421, in coinciding with Hong Kong leading Chinese equity markets to rise on Wednesday, with growing speculation about the reopening of economic activity at full capacity.

The New Zealand dollar was up 0.46% to $ 0.5866, after receiving further support from a strong employment report, which bolstered the case for a significant rate hike this month.

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