The dollar rose on Friday morning in Asia but remained near a one-month low. The euro was stronger, as investors bet on earlier European rate hikes.
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or watch the greenback against a basket of other currencies inched 0.07% to 93.388 by 12:16 AM ET (4:16 AM GMT).
USD/JPY inched 0.07% to 113.64. Japanese data released earlier in the day showed that the Tokyo Core Consumer Price Index rose 0.1% year-on-year, while the CPI fell 0.2% month-on-month, on October. Industrial output fell 5.4% month-on-month, employment/applications ratio was 1.16 and unemployment rate stood at 2.8% in September.
AUD/USD rose 0.11% to 0.7552. As of September. Producer Price Index increased 1.1% QoQ and 2.9% YoY in Q3 2021.
The NZD/USD exchange rate fell 0.15% to 0.7188. USD/CNY inched 0.01% to 6.3910 while GBP/USD inched 0.07% to 1.3798.
The Euro was mostly flat at $1.16855 after climbing as high as $1.1692 for the first time since September 28 in the previous session. The European Central Bank (ECB) delivered its policy decision on Thursday, with comments by President Christine Lagarde interpreted by some as insufficient to confirm the central bank's dovish stance. nurse.
"The resistance is not strong enough" by Lagarde, opening the way for the euro to test $1.1680 in the near term, said TD Securities strategists.
The foreign exchange market saw big moves as central banks, including Bank of Canada and Bank of Japan, made policy decisions earlier in the week.
The Fed and Bank of England (BOE) will make their policy decisions next week. While the Fed is expected to begin reducing asset purchases from November onwards, the BOE is expected to announce a rate hike.
Dollar holds firm ahead of Fed decision; Yen falls after LDP win
The dollar traded near a two-and-a-half-week high against other currencies on Monday as rapidly rising inflation in the United States fueled the possibility of an earlier Federal Reserve interest rate hike.
It hit a 1-and-a-half-week high against the yen after Japan's yen weakened in a strong sign that the ruling party's victory in the election weekend eased political uncertainty.
The US Dollar Index, which measures the greenback against six rivals, was little changed at 94.166, hovering close to Friday's peak of 94.302, levels not seen since Oct. 13.
1 US dollar is exchanged for 114,175 yen, up 0.13% compared to the end of last week. Above 114.41 would be the strongest since October 20, the day it hit a multi-year high of 114,695.
Japan's new Prime Minister Fumio Kishida's ruling Liberal Democratic Party defied expectations and secured a solid majority in Sunday's parliamentary elections, cementing his place in a party that has seen many division and allowed him to ramp up the stimulus package.
Monetary policy in the United States and elsewhere is in the spotlight this week, with the Federal Open Market Committee expected to announce an easing of stimulus measures on Tuesday.
The government's core personal consumption spending index rose 4.4% - the Fed's preferred measure of inflation - reinforcing market expectations for a rate hike around the middle of next year.
Lending rate futures, which track short-term interest rate expectations, estimate a 90% chance of tightening in June 2022, including another rate hike in December, according to the data.
The Reserve Bank of Australia will also make a policy decision on Tuesday, with markets challenging the central bank's view that interest rates won't rise until 2024.
Market pulse October 27: Green on a large scalePersonal income tax revenue from salaries, wages, securities, real estate… decreased