The dollar and euro climbed to a three-week high versus the yen as the Senate voted in favor of a deal to end a U.S. government shutdown and raise the debt limit, damping demand for haven assets.
The yen dropped versus major peers as Asian stocks rose. The greenback maintained yesterday losses versus higher-yielding currencies such as New Zealand’s with markets gauging the impact of the recent impasse on economic growth and prospects for the Federal Reserve to taper stimulus. Policy makers including Fed Bank of New York President William Dudley speak today. Australia’s dollar reached a four-month high before a Chinese report tomorrow forecast to show growth accelerated.
“The yen is going to be under a little bit of pressure,” said Emma Lawson, the Sydney-based senior currency strategist at National Australia Bank Ltd. “There is still some uncertainty because the deal is effectively just kicking the problem down the road.”
Content 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 Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at firstname.lastname@example.org. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.