The US Dollar firmed broadly today, posting the largest single day’s gains in over a month as an improved outlook globally convinced investors that a bullish dollar sentiment was the way to go. Helping the greenback was a surprisingly dovish announcement from Singapore’s central bank that paved the way to more easing there given a diminished outlook for the country’s economic growth. According to one FX strategist in Tokyo, Singapore’s move led traders to bid up the greenback. The US Dollar Index, used to assess the dollar’s relative weight, continued to edge higher, adding nearly 0.2% to the almost 1% gain yesterday.
As reported at 10:33 am (BST) in London, the EUR/USD was lower at $1.1265, down 0.07%; the pair has ranged from $1.1234 to $1.1285 in a relatively narrow daily trading band. The GBP/USD was down 0.24% at $1.4172; the pair earlier hit a session low of $1.4090 while the daily high was at $1.4208.
Yen Pressured by BOJ Commentary
The USD/JPY pair was trading lower at 109.1410 Yen, down 0.14% and moving well away from the session peak at 109.59 Yen; the pair had recently struck a 17-month low at 107.63 Yen. Analysts expect the Yen to be under renewed pressure after comments by the BOJ Governor that suggested more and varied intervention if the Japanese Yen continued to appreciate despite the government’s efforts.