Dollar drops, investors switch focus on other central banks
The dollar declined and hovered near recent lows on Tuesday morning in Asia. Investors shifted their focus on central banks outside the United States, particularly the Reserve Bank of Australia’s policy decision for hints on the start of their asset tapering.
The U.S. Dollar Index that measures the greenback against other major currencies dropped 0.11% to 92.112 by 10:33 PM ET (2:33 AM GMT).
The USD/JPY pair tallied a crash of 0.03% to 109.80.
The AUD/USD pair soared 0.12% to 0.7448, and the NZD/USD pair increased 0.06% to 0.7141.
The USD/CNY pair rose 0.03% to 6.4559, while the GBP/USD pair also climbed 0.12% to 1.3851.
The U.S. Federal Reserve was expected to postpone its asset tapering as a result of a weak U.S. jobs report. Investors now eye the policy decisions of other central banks.
The RBA will come out with its own later today. Its decision to delay asset tapering will force investors to sell the Australian dollar, while a hawkish stand would nudge the currency higher.
The Bank of Canada will follow suit the next day, while the European Central Bank will release it on Thursday.