Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Forex - Dollar near 11-Month Highs, Pound at 2018 Lows before BoE

Published 21/06/2018, 08:38
Updated 21/06/2018, 08:46
© Reuters.  Dollar near 11-month highs, pound at 2018 lows before BoE

© Reuters. Dollar near 11-month highs, pound at 2018 lows before BoE

Investing.com - The dollar rose to near eleven month highs against a currency basket on Thursday, supported by expectations for a faster pace of rate hikes this year, while the pound was at the lows of the year ahead of the Bank of England meeting later in the day.

The U.S. dollar index, which measures the greenback’s strength against a basket of six major currencies, was up 0.20% to 94.98 by 03:37 AM ET (07:37 AM GMT), just below last Friday’s eleven-month high of 95.13.

Demand for the dollar was underpinned after Federal Reserve Chairman Jerome Powell on Wednesday reiterated that the case for continued gradual rate hikes remains strong.

The dollar was also supported as risk aversion stemming from an escalating trade dispute between the U.S. and China eased.

The U.S. currency was higher against the yen, with USD/JPY climbing 0.25% to 110.64, extending its recovery from a one-week low of 109.54 reached on Tuesday.

The euro was a touch lower, with EUR/USD sliding 0.18% to 1.1553.

Sterling was weaker, with GBP/USD last at 1.3142 after plumbing a low of 1.3125 overnight, a level not seen since mid-November.

The pound found some support after British Prime Minister Theresa May won a crucial parliamentary vote on the EU withdrawal bill, the government’s flagship piece of Brexit legislation.

Had the vote not passed it would have potentially given lawmakers the power to stop Britain leaving the EU without a deal.

The BoE was widely expected to keep interest rates on hold later in the day and investors were focusing on whether the bank would offer any indications on the likelihood of a rate hike at its next meeting in August.

Elsewhere, the Australian dollar was little changed near 13-month lows with AUD/USD at 0.7365.

The New Zealand dollar plumbed fresh six-month lows overnight after data showing that the economy slowed in the first quarter underlines expectations that the country’s central bank will keep interest rates on hold for longer. NZD/USD was last at 0.6843 after falling as low as 0.6826 earlier.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.