- The Bloomberg Dollar Spot Index rose 0.6% after a 0.5% drop on Tuesday
- The index is about 1% away from erasing its gains of the year as traders weigh the Federal Reserve’s easing path and debate a possibility of another larger interest-rate cut
- READ: Fed’s Kugler Says She ‘Strongly Supported’ Half-Point Rate Cut
Dollar Advances, Leading to Many Majors Fall More Than 1%
- One-day change against the US dollar
Canadian DollarEuroDanish KroneBritish PoundSwiss FrancSwedish KronaAustralian DollarJapanese YenNew Zealand DollarNorwegian Krone-1.5-1.0-0.50 %
Source: Bloomberg, Sept. 25
- “The euphoria around China stimulus definitely faded,” said Brad Bechtel, global head of FX at Jefferies
- “Month-end flows are starting to boost USD as well after a volatile month, so as we close the quarter and reset for Q4 USD will likely be a beneficiary,” said Helen Given, a foreign-exchange trader at Monex Inc.
- USD/JPY rallies 1.1% to 144.74
- “Tokyo CPI later this week is the next major event to watch,” Noah Buffam at CIBC Capital Markets writes in a note. “We expect USD/JPY to sell off towards the 135 level into the end of the year on a more dovish than priced Fed and further hawkishness out of the BOJ”
- USD/SEK rose 1% to 10.1956
- Riksbank cut borrowing costs by a quarter point and raised the possibility of a bigger move in coming months in its bid to spur the domestic economy
- USD/NOK rose 1.7% to 10.5859
- EUR/USD fell 0.5% to 1.1130
- USD/CHF climbed 0.8% to 0.8500
- READ: SNB Rate Cliffhanger Will Be Jordan’s Farewell: Decision Guide
- AUD/USD falls 1% to 0.6823 after data showed Australia’s inflation slowed to a three-year low last month
- The Aussie had risen to 0.6908 earlier, the highest since February 2023, as a gauge for Chinese equities traded in Hong Kong extended a rally
- Some information comes from FX traders familiar with the transactions who asked not to be identified because they aren’t authorized to speak publicly
