The dollar stabilized near its highest level in ten months against a basket of currencies on Thursday, keeping the yen near an area that may require intervention by the authorities to support it, amid investors’ assessment of the impact of positive US economic data and new statements from Federal Reserve (US Central) officials.
As the dollar maintained its strength, the euro and the British pound found it difficult to recover from the multi-month lows they recorded yesterday, Wednesday.
The Australian and New Zealand dollars trimmed their losses, ignoring retail sales data in Australia that came below expectations.
Minneapolis Fed President Neel Kashkari is one of the voices at the Fed warning markets about the possibility of raising interest rates, and he said on Wednesday that ample evidence of continued strength in the economy meant there could be further tightening.
Federal Reserve Chairman Jerome Powell is scheduled to speak later Thursday, which could give markets more indications about the path of monetary policy in the United States.
The dollar index, which measures the US currency against a basket of other major currencies, settled at 106.70 and is still hovering near the 106.84 level, which it reached overnight and was the highest since November 30.
The yen fell from its new lowest level in 11 months, which it reached yesterday, Wednesday, at 149.71, but it remained very close to the threshold of 150 per dollar. In the latest trading, it fell 0.2 percent to 149.38 yen per dollar.
The markets view the exchange rate of 150 as a dividing line beyond which the Japanese authorities may intervene, as happened last year.
As for the euro, it remained largely stable, but remained above its lowest level in eight months, which it recorded yesterday, Wednesday, at $1.04880, while investors await key inflation data scheduled to be issued tomorrow, Friday, from the European Union.
The British pound recorded 1.2137 per dollar, a price close to its lowest level since March 17.
As for the Australian dollar, which touched its lowest level in ten months last night, and the New Zealand dollar, each rose by about 0.3 percent against the dollar.
2023-09-28 07:04:22
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