The USD maintained its upward momentum in the Asian trading session on Friday morning, after reaching a three-month high. Investors continue to react to mixed signals from central bank decisions this week, the profit results of technology stocks, and the temporary tariff ceasefire agreement between the US and China.
The USD Index, which measures the strength of the greenback against a basket of six major currencies, is stable at 99.478, after the decline of the Wall Street stock market on Thursday caused concern in global markets.
This shows that inflation in the Japanese capital is still exceeding the target of the Bank of Japan (BOJ), making the BOJ's monetary policy management roadmap more complicated, right after the bank decided to keep interest rates unchanged on Thursday.
"Rising risk sentiment is leaning towards the US dollar," said Rodrigo Catril, a currency strategist at the Bank of Australia (NAB) in Sydney.
"The US Federal Reserve (FED) is still uncertain whether it will continue to cut interest rates," Mr. Rodrigo Catril added, noting that "the weakening of the yen due to the BOJ's policies is not helping the current situation."
In another development, Japan's new Finance Minister Satsuki Katayama said on Thursday that she withdrew her previous statement in March, saying that the real value of the yen should be around 120130 yen to 1 USD, with the reason that she is currently in charge of monetary policy and exchange rate management.
Meanwhile, traders have reduced expectations of a possible Fed rate cut at the next policy meeting on December 10. According to CME Group's FedWatch tool, the probability of FeED cutting interest rates by another 25 basis points is now only 74.7%, compared to 91.1% last week.
The yield on the 10-year US Treasury note remained at a three-week high, reaching 4.0989%, up 0.59 basis points from 4.093% in the previous session.
The euro rose slightly by 0.1%, to $1.1572, after the European Central Bank (ECB) on Thursday kept interest rates unchanged at 2% at its third consecutive meeting, while emphasizing that monetary policy is currently in a appropriate position as regional economic risks gradually ease.
Compared to the overseas yuan (CNH), the USD is moving sideways at 7.1089, as investors await China's October PMI data due on Friday.
The yield on the 10-year US Treasury note remained at a three-week high, reaching 4.0989%, up 0.59 basis points from 4.093% in the previous session.
The euro rose slightly by 0.1%, to $1.1572, after the European Central Bank (ECB) on Thursday kept interest rates unchanged at 2% at its third consecutive meeting, while emphasizing that monetary policy is currently in a appropriate position as regional economic risks gradually ease.
