Hawkish comments from Federal Reserve officials and strong economic data bolstered investor expectations that the central bank will maintain its policy stance The longest rally in a year.
The ICE US Dollar Index (DXY), which tracks the greenback against six major currencies, was up 1.04 percent at 111.21 in late New York trade.
Sterling fell more than 2% in intraday trading after rising for six consecutive trading days, and fell 1.3% to $1.1325 at the time of writing. Prime Minister Liz Truss promised earlier at the Conservative Party’s annual meeting that she would control the country’s finances with an iron fist and cut debt as a proportion of national income.
After a 1.7% surge yesterday (4th), the euro fell 1% to $0.9883 today, its biggest one-day fall in nearly two weeks.
Market expectations for the Fed to slow its efforts to raise rates have supported most major currencies higher and weighed on the dollar in recent days.
Marc Chandler, chief global foreign exchange market strategist at Bannockburn, said with the euro and sterling trading well and the stock market rising, there was a sense of risk in the market, but he believed nothing but this is investors who examine the trading range, and most importantly, risk assets The rebound was not caused by a change in the Fed’s attitude.
Recently, the new Fed director, Jefferson (Philip Jefferson) reiterated that inflation is the main concern of the central bank, it may take some time to bring down inflation, and economic growth may be dragged down. San Francisco Fed President Mary Daly also said today that the central bank must see signs of a clear pullback in core inflation before slowing the pace of interest rate hikes.
Strong economic data also appeared to dispel speculation about a Fed policy change. US ADP added 208,000 jobs in September, above market consensus, and the ISM non-manufacturing index was also slightly higher than expected.
Investors will look next to Friday’s nonfarm payrolls report for clues about the Fed’s policy path.
The yen fell 0.25% to 144.58 yen against the dollar, while the offshore yuan weakened 0.52% to 7.0677 yuan against the dollar.
New Zealand’s central bank raised interest rates by 2% for the fifth time in a row, suggesting it would continue to raise interest rates, the New Zealand dollar once rose above 0.58 US dollar, the highest since September 23, and rose 0.23% to 0.5738 US dollars before the deadline. The Australian dollar fell 0.2% to $0.6487.
From Thursday (6th) Taiwan time around 6:00 Price:
- The dollar index was 111.2047. +0.9011%
- The euro was quoted against the US dollar (EUR/USD) at $0.9882 per euro. -1.0117%
- The British pound was quoted against the dollar (GBP/USD) at $1.1322 per pound. -1.2989%
- The Australian dollar was quoted against the US dollar (AUD/USD) at 1 Australian dollar to 0.6489 yuan. -0.1692%
- The US dollar against the Canadian dollar (USD/CAD) was at 1.3613 Canadian dollars. +0.7699%
- The US dollar was quoted against the Japanese yen (USD/JPY) at 144.60 yen per dollar. +0.2635%
