London — The dollar fell against major peers on Thursday, with the Australian and New Zealand dollars rising, while retreating from recent rises hit their lowest levels in 10 days.
Expectations that the US Federal Reserve will tighten monetary policy faster than previously expected have helped the dollar strengthen since early September.
However, the rise has recently eased, and on Thursday it was the second so far this year, even after the minutes of the Fed’s September meeting confirmed that stimulus tapering was likely to begin this year. We are on track for a big two-day decline.
Neil Jones, Head of Forex Sales at Mizuho, said:
“The Fed has confirmed the expectations of many investors. I suggest, but it holds a long dollar position.”
“This was the situation to liquidate the long dollar. (Fed tightening) has some consideration in the price, so we can profit from the long dollar position.”
At 0913 GMT, the dollar index fell 0.2% to 93.794 on the day, the lowest since October 4. On Tuesday, it hit a year-long high at 94.563.
The euro rose 0.2% to $ 1.1619, a nine-day high.
US consumer prices rose steadily in September and could rise further amid rising energy prices, pressured the FRB to act faster to normalize policy, according to a Labor Ministry report. There is a possibility of calling.
The Federal Reserve Board’s September minutes also showed an increasing number of policy makers concerned that high inflation could continue.
“We hope that the dollar’s depreciation will not last long and will return to a long-term bullish trend,” said Mizuho’s Jones.
The US’s first unemployed bill and PPI data will be paid later in the day.
“Today’s US PPI data should remind us that the Fed needs to be more vigilant about inflation,” ING’s strategist wrote in a note to customers.
Sweden’s inflation has risen to its highest level since September 2008, and the Swedish crown has expanded profits, urging the euro to reach its highest level in eight months.
At 0914 GMT, the euro fell 0.5% against the 10.0175 Swedish crown.
Norwegian krone also rose, with the euro down 0.6% against Nocchie at 9.7828.
Simon Harvey, senior FX analyst at Monex Europe, said the Swedish crown surge was the majority of the day’s rebounds in high-risk currencies, but inflation data contributed to the move.
The Australian dollar, which is considered a fluid substitute for risk appetite, rose 0.5% against the $ 0.74175 dollar. The currency has wiped out data showing a decline in job numbers, and investors have bet on a quick recovery as the blockade has been eased.
The New Zealand dollar also rose 0.8% to $ 0.70245, a record high in two and a half weeks.
The Swiss franc rose about 0.2% against the euro. Around 0600 GMT, it reached its highest value in 11 months against the euro. According to Mizuho Jones, the move could be due to a combination of risk aversion in the global market and a broader depreciation of the euro.
The Turkish lira held back losses overnight, retreating from record lows after President Erdogan dismissed three members of the central bank’s monetary policy committee.
Elsewhere, the cryptocurrency Bitcoin was about $ 57,622. Early in the session, it reached a five-month high of $ 58,550.
Bank of England Deputy Governor Jon Cunliff said the cryptocurrency collapse is a “plausible scenario” and needs rules to regulate the fast-growing sector as an “urgent issue.”