On Thursday, the dollar was trading at its highest level in more than a year against the euro and close to a five-year high against the yen after a tightening trend by Federal Reserve policymakers, supported by strong data in the US, in contrast with weaker expectations for monetary policy in Europe and Japan.
The dollar index, which measures the performance of the US currency against six competing currencies, fell slightly to 96.759, but still is in hovering close to the high recorded on Wednesday, reaching 96.938, the highest level since July 2020.
The minutes of the Federal Reserve’s monetary policy meeting on Wednesday November 2 and 3 showed that central bank policymakers said they would be open to accelerating the curtailment of its bond buying program if high inflation persists. and to move faster towards rising interest rates.
At the same time, labor market and consumer spending readings beat economists’ estimates as inflation continued to rise.
The dollar changed little at 115,355 yen, to remain close to last night’s high of 115,525, a level not seen since January 2017.
The euro rose to $ 1.1210 but continued to trade near the lowest level in about 17 months, which was recorded Wednesday at $ 1.1186, after falling German business confidence for the fifth consecutive month.
The pound was up 0.12% to $ 1.3342, after falling to $ 1.3317 for the first time Wednesday. in 11 months.
Investors remain focused on whether or not the Bank of England will raise interest rates on December 16.
The risk-sensitive Aussie dollar rose 0.17% to $ 0.7208, from $ 0.7185 on Wednesday, its lowest level since September.
The New Zealand dollar rose 0.25% to $ 0.68895 to stabilize after falling to a three-month low of $ 0.6856 the day before when the country’s central bank raised its benchmark interest rate by a quarter of a percentage point to 0.75%, disappointing the hopes of increasing it by half a percentage point.
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