Dollar on back foot as US yields, crude prices dip; Aussie buoyed by hawkish RBA
SPY•The US dollar stayed under pressure as Treasury yields and crude prices dipped, while the Australian dollar hovered near a three-week high after RBA Deputy Governor Andrew Hauser said the inflation outlook looked “materially worse.”
1. Dollar remains under pressure
The US dollar was steady at 101.78 on Wednesday after falling 0.2% the previous day and reaching a three-week low. Lower Treasury yields and crude prices weighed on its appeal as stocks advanced.
2. Aussie near three-week high
The Australian dollar rose 0.1% to $0.7013, just below Tuesday’s high of $0.7017. RBA Deputy Governor Andrew Hauser said the inflation outlook looked “materially worse” and that he was unsure whether the central bank would need to raise its policy rate again next month.
3. Other currencies and policy decisions
The euro traded at $1.1229 as traders weighed protests and fiscal strains in France. The dollar was little changed at 158.33 yen and $1.33735 per pound. Traders do not expect rate changes from the Fed, ECB or Bank of Japan at decisions starting next Wednesday, while they are betting on quarter-point hikes from the Reserve Bank of New Zealand and Bank of Canada.
