2024-01-23T11:15:22+00:00
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/ The US dollar fell in European trading on Tuesday, while the Japanese yen rose following the Bank of Japan’s latest policy meeting.
The dollar index, which tracks the greenback against a basket of six other currencies, was down 0.03% at 103.082 today, giving up some of the nearly 2% gain it has made since the start of this year.
The dollar index also fell but remained close to a one-month high as traders priced in a greater chance that the central bank will keep interest rates steady in March, a notable reversal from previous expectations of a rate cut.
The yen rose 0.5 percent against the US dollar in Asia to 147.39 per dollar, after the Bank of Japan maintained its ultra-low interest rates and stuck to its widely expected ultra-dovish policies.
The Chinese Yuan/US Dollar currency pair also fell 0.3% to 7.1712, as the yuan received support from recent reports that the People’s Bank of China was selling dollars in the open markets to support the Chinese currency.
The euro-dollar pair rose 0.1% to 1.0886 in Europe, ahead of the European Central Bank’s policy-setting meeting on Thursday.
Meanwhile, the GBP/USD pair was up 0.2% at 1.2724, with the pound supported by the release of data showing that UK public sector borrowing fell to £7.8 billion last month, about half the amount borrowed a year ago and the lowest figure for December since 2019.