Dollar drops, investors bet faster-than-expected monetary policy tightening
The dollar fell on Wednesday morning in Asia, touching a three-month high versus the euro and a one-week high versus the yen. The U.S. Federal Reserve is speculated to speed up tightening its monetary policy amid higher-than-expected inflation in the United States.
The U.S. Dollar Index that measures the greenback against other major currencies dropped 0.03% to 92.727.
The NZD/USD pair rose 0.99% to 0.7014, climbing over the 0.7 mark. The Reserve Bank of New Zealand (RBNZ) maintained its interest rate at 0.25%. The bank also highlighted a surprise move of halting its large-scale asset-purchase program in its policy decision released today.
The AUD/USD pair gained 0.17% to 0.7459. Australia’s Westpac consumer sentiment index jumped 1.5% in July against the previous month’s 5.2% drop.
The USD/CNY pair tallied a 0.10% increase to 6.4748, ahead of the release of Chinese GDP and industrial production data on Thursday.
The USD/JPY pair shed 0.11% to 110.48, while the GBP/USD pair soared 0.08% to 0.3819.