The dollar was set for the tightest quarterly trading range in almost two years versus the yen as stimulus from central banks in the world’s biggest economies pushes volatility to record lows.
A gauge of the dollar was about 0.2 percent from the lowest in a month against a basket of peers before a report today forecast to show the U.S. economy shrank more than previously estimated, underpinning bets the Federal Reserve will keep borrowing costs near zero. The euro was poised for a quarterly drop after the European Central Bank took one of its main interest rates negative this month. Australia’s dollar held declines after the nation lowered its estimate for the value of resources and energy exports.
“Traders tend to feel that a lot is out of their control with central banks being active,” said Stan Shamu, a markets strategist in Melbourne at IG Ltd. “That’s one of the main reasons why we’ve seen these tight ranges being maintained.”
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.