The Dollar Was Trading Near a 32-Year High

The dollar hovered near a 32-year high of 149 yen. Tokyo might step in to support the yen again.

After the decision to slow the rate hikes to a quarter point rather than another half-point increase was made, the Australian dollar strengthened.

The New Zealand dollar rose after a stronger-than-expected consumer price report raised hopes for more policy tightening.

The US dollar bought 148.854 yen after climbing to 149.11 late in the overnight session. This brings the major psychological barrier of 150 into sharp focus.

The US dollar index compares the greenback to six major currencies, including the yen, euro, and sterling. It sagged near a 112-week low as a dramatic U-turn over the United Kingdom’s contentious tax-cutting “mini-budget” boosted European currencies.

The dollar-yen pair had gained 3% since October 5. The Bank of Japan’s intervention in the currency market on September 22 kept it from breaking above 146 for the first time in nearly two weeks.

Suzuki admitted that there was no discussion on what steps could address currency volatility. Janet Yellen has also stated that Washington has no appetite for coordinated action. She stated that the dollar’s overall strength is a natural result of different rates of monetary tightening in the US and other countries.

Currencies

Sterling eased slightly to $1.1349 after surging 1.63% on Monday, reaching $1.144 for the first time since October 5.

Prime Minister Liz Truss appointed Jeremy Hunt as finance minister. He drove the pound to a record low by withdrawing much of the £45 billion “mini-budget” that caused a market panic.

The euro remained at $0.9837 after reaching its highest level since October 6 at $0.98523.

The Australian dollar rose 0.142% to $0.631. Meanwhile, the New Zealand kiwi rose 0.57% to $0.567.