After profit taking investors sent the greenback lower during three days of volatile FX markets, the U.S. Dollar managed to regain its footing, rising broadly against its peers. On Monday, the U.S. Dollar had struck a 7-year high versus the Japanese Yen but a significant fall in oil prices sent investors scurrying for safe havens like the Yen and the Swiss Franc. In Switzerland, the central bank announced it was maintaining the status quo of its monetary policy which helped to push the Swiss Franc higher, especially against the Norwegian Krone which came under pressure after an unexpected rate cut by the central bank.
As reported at 8:15 am (GMT) in London, the USD/JPY pair was trading at 118.28 Yen a gain of 0.4% and pushing back toward Monday’s peak of 121.86 Yen. The EUR/USD was trading at $1.2447, steadying after hitting a 2-year trough at $1.2247 this past Monday.
RBNZ Hints at Possible Rate Increase
In New Zealand, the NZD/USD edged away from a 2-week peak which occurred in the wake of comments made by officials at the New Zealand Central Bank which suggested that another rate hike could soon be in the making. The NZD/USD pair is currently trading at 0.7815, at the low end of the day’s trading range of 0.7778 to 0.7872.