Euro appreciates against the dollar in early trade

27 Apr 2023 , 09:12 AM

On Thursday, the euro traded near a one-year high against the dollar.

The sensitive-to-risk Australian dollar failed to hold above the crucial 66-cent level, while the top cryptocurrency, bitcoin, stabilized at $29,400 after seeing huge swings in the previous session.

The Bank of Japan’s two-day policy meeting, the first under the new governor Kazuo Ueda, started with the yen in a holding pattern.

The euro gained 0.05% to $1.10415, moving back towards the overnight high of $1.1096, which had been the highest level since April of last year.

The dollar index, which compares the value of the dollar to those of six major peers with the euro having the highest weighting, was little changed at 101.41 on Thursday after falling by 0.42% on Wednesday and touching a nearly two-week low of 101.00.

On Wednesday, Germany boosted its growth projections upward once more, as a study revealed that consumer confidence has been increasing steadily.

Contrarily, the most recent statistics released overnight showed that capital goods spending in the US decreased more than predicted, fueling concerns of a recession. The ongoing struggles over raising the U.S. debt ceiling and the decline in First Republic Bank didn’t improve the atmosphere.

The dollar was trading at 133.63 yen at this time. Although it is widely believed in the market that Ueda would maintain the ultra-easy policy settings on Friday, no one is prepared to rule out another shock like the unexpected doubling of the 10-year bond yield band in December.

After slightly softer-than-expected consumer inflation statistics on Wednesday, traders of the Australian dollar are more convinced that the Reserve Bank of Australia will leave rates steady for a second meeting the following week.

The price of the currency was unchanged on Thursday at $0.6603 after falling to a 1-1/2-month low of $0.6592 the previous session.

For feedback and suggestions, write to us at [e-mail]