Global Currencies on Edge Amid Central Bank Policies
The Australian dollar remained close to its highest point of the year, with the central bank likely to keep policy steady. Traders are watching for any signals of rate cuts. The yen and euro showed minimal changes, while the British sterling stayed close to its peak as central banks around the world maintain cautious stances.
The Australian dollar hovered close to its highest level of the year on Tuesday, with the central bank expected to keep policy steady. Traders are eyeing potential near-term easing signals.
The yen held steady against the U.S. dollar ahead of a speech by Bank of Japan Governor Kazuo Ueda, which may provide insights into future interest rate hikes. Meanwhile, the euro struggled following weak business activity surveys, and the British sterling tracked near a 2-1/2 year peak, boosted by the Bank of England's less dovish stance compared to other central banks.
As of 0007 GMT, the Aussie slipped 0.1% to $0.68305 after a previous 0.45% jump. Economists and traders are divided over the likelihood of rate cuts by year-end. Commonwealth Bank of Australia analysts predict the RBA's comments will be hawkish, potentially driving the AUD higher. Additionally, any stimulus from China is expected to benefit the Aussie.
The yen rose to 143.45 per dollar but stayed within its recent range amid mixed signals from the BOJ. The euro remained steady at $1.1107, and sterling was flat at $1.33495 as cautious central bank policies dominated market sentiment.
(With inputs from agencies.)
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