It was a bad day for the dollar in Asia on Thursday morning after it had lost ground overnight against both the pound and the euro. U.S. yields took a break from their recent rise, which gave the Japanese yen some relief.
The US Dollar Index, which measures the value of the US dollar against other currencies, fell 0.18 percent to 99.733 at 11:58 a.m. ET (3:58 a.m. GMT) on Wednesday.
The USD/JPY pair fell 0.35 percent to 125.22, but it remained at that level.
People in Australia saw their jobs grow by 17,900 and their unemployment rate rise by 4% in March 2022. The AUD/USD pair was up 0.15 percent to 0.7460, where it had been previously.
The NZD/USD pair gained 0.40 percent.It now stands at 0.6822.
There were small changes in the value of the USD/CNY and the GBP/USD.
People now wait for the European Central Bank to make its next policy decision later in the day.
The head of FX strategy at the National Bank of Australia told Reuters that at the start of the week, “equities were down, the dollar was going up, and now because of what’s going on in Treasuries, everything has turned around.”
The benchmark 10-year Treasury note carried a yield of 2.7120 percent. This was because people thought the US Federal Reserve would do more to tighten its monetary policy.
Since June 2021, the pound has gained the most percentage points in a day against the dollar. It gained 0.9 percent against the US dollar on Wednesday.U.K. producer prices rose by 19.2% year-over-year and 5.2%) month over month in March 2022. Consumer prices rose by 7% year-over-year and 1.1% month over month.
“The money is flirting with the idea that the Bank of England could do 50 basis points in May, though we don’t expect that.” Attrill said this could be because of higher-than-expected U.K. CPI numbers.
He said that the market was ready for a hint that the ECB might end its quantitative easing program in the second quarter of 2022, not the third.
“The risk is that they will follow the path in terms of becoming more dovish.”
It was a surprise to the markets when the Bank of Korea raised its interest rate to 1.5% in its policy decision. Singapore also tightened its monetary policy, which caused the Singapore dollar to rise about 0.5% to a one-week high against the US dollar. The Korean won, on the other hand, went up 0.16 percent.
Canada’s Bank of Canada and New Zealand’s Reserve Bank (RBNZ) also raised their interest rates, to 1% and 1.5%, a day before.
A post-meeting statement from the New Zealand central bank said that the peak cash rate will not change because of worries about the global economy. The dollar fell 0.6 percent against the Canadian dollar, but it rose against the New Zealand dollar.
