Dollar treads water as Middle East tensions simmer; Aussie buoyed by hawkish RBA
SPY•The US dollar hovered near a three-week low as the Australian dollar rose 0.2% to $0.70155, after RBA Deputy Governor Andrew Hauser said the inflation outlook looked “materially worse.”
1. Dollar near three-week low
The US dollar hovered near a three-week low as traders assessed developments in the Middle East. The dollar index was steady at 101.79 after falling 0.2% on Tuesday, while the greenback was flat at 158.16 yen and edged up to $1.1224 per euro and $1.33735 against sterling.
2. Aussie reaches three-week high
The Australian dollar rose 0.2% to $0.70155, after earlier reaching $0.70289, its highest level since September 29. RBA Deputy Governor Andrew Hauser said the inflation outlook looked “materially worse.”
3. Markets weigh risks
Oil prices edged toward a five-month high as traders weighed an unconfirmed Iranian media report that Tehran would not hold talks with Washington until its demands were met. Treasury yields have slid this month, while demand for safe-haven assets has diminished as Wall Street and Asian stocks advanced. Traders remained wary of the euro over protests and fiscal strains in France; they did not expect rate changes at upcoming Fed, ECB or Bank of Japan meetings.
