By Tom Westbrook SINGAPORE, Jan 31 (Reuters) - The dollar headed for its biggest monthly gain since September and the yen for its sharpest drop in nearly a year on Wednesday, as traders waited on a U.S. rates decision to round out January. The dollar has gained 2% against a basket of major currencies this month as markets dialled back expectations on the speed and scale of rate cuts in the face of strong U.S. economic data and pushback from central bankers. In Japan, meanwhile, tepid wage growth and cooling inflation dulled expectations for hikes, driving the yen down more than 4% on the dollar in January, its largest fall since Feb. 2023. The dollar was steady at $1.0844 per euro and a touch weaker at 147.23 yen early in the Asia day, with a summary showing discussion of ending negative interest rates at the Bank of Japan's January meeting helping support the yen. The dollar index last sat at 103.36. Sterling hovered at $1.2698. Later, the Federal Reserve is expected to hold U.S. interest rates steady but flag cuts are coming by dropping language indicating it is weighing further hikes. Interest rate futures price a roughly 43% chance of a Fed rate cut in March, down from 73% at the start of the year. "The market reaction to the (Fed) meeting and its spillover onto most asset markets is likely to be largely captured by the impact on the probability of a rate cut at the March meeting," said Deutsche Bank's chief international strategist Alan Ruskin. The pricing tends to influence the euro/dollar rate, he noted, with a 50-50 probability consistent with the euro at $1.087. "A 100% probability of a rate cut would point to euro/dollar at $1.1080, while a rate cut that is fully ruled out for March would point the way to euro/dollar at $1.0660," he said. Ahead of the Fed, purchasing managers index surveys are due in China and European inflation figures are expected. Australian inflation came in marginally below economist forecasts, reinforcing bets the central bank is done hiking. The Aussie slipped 0.2% to $0.6588. The New Zealand dollar was steady at $0.6133. Expectations of interest rate cuts in China have driven a strong rally in the bond market this month while the yuan has been squeezed by flight from China's crumbling equity markets. The Chinese currency was steady at 7.1887 in offshore trade on Wednesday, down 0.9% for the month. ======================================================== Currency bid prices at 0037 GMT Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid Previous Change Session Euro/Dollar $1.0846 $1.0845 +0.00% -1.74% +1.0847 +1.0843 Dollar/Yen 147.3650 147.6100 -0.16% +0.00% +147.5500 +147.2050 Euro/Yen159.82 160.07 -0.16% +2.71% +160.0700 +159.6500 Dollar/Swiss 0.8618 0.8619 -0.01% +2.40% +0.8619 +0.8618 Sterling/Dollar 1.2695 1.2701 -0.04% -0.24% +1.2700 +1.2695 Dollar/Canadian 1.3399 1.3398 +0.02% +0.00% +1.3402 +1.3395 Aussie/Dollar 0.6587 0.6603 -0.23% -3.38% +0.6603 +0.6583 NZ Dollar/Dollar 0.6132 0.6136 -0.07% -2.96% +0.6136 +0.6124 All spots Tokyo spots Europe spots Volatilities Tokyo Forex market info from BOJ (Reporting by Tom Westbrook. Editing by Sam Holmes.)
Real-time Estimate TTMZero 05:24:36 2024-06-05 EDT | 5-day change | 1st Jan Change | ||
0.6648 USD | +0.04% | +0.73% | -2.38% |
10:45am | Australian Dollar Shines After Shrugging Off Soft Q1 GDP Report | MT |
07:35am | Dollar finds footing as Bank of Canada weighs rate cut | RE |
Stocks mentioned in the article
Price
|
Change
|
5d. change
|
Capi.
| ||
---|---|---|---|---|---|
2,748 PTS | -1.41% | -0.24% | - | ||
199.5 JPY | +0.71% | +0.19% | - | ||
169.9 JPY | +0.64% | +0.13% | - | ||
156.2 JPY | +0.70% | -0.43% | - | ||
114.2 JPY | +0.69% | -0.08% | - | ||
103.9 JPY | +0.77% | +0.29% | - | ||
96.61 JPY | +0.88% | +0.98% | - | ||
14.95 EUR | -0.50% | -2.65% | 32.05B | ||
9.258 CNY | +0.15% | +0.69% | - | ||
7.879 CNY | +0.06% | +0.63% | - | ||
7.254 CNH | +0.11% | -0.02% | - | ||
7.247 CNY | +0.12% | +0.09% | - | ||
5.297 CNY | +0.09% | +0.44% | - | ||
4.82 CNY | +0.15% | +0.77% | - | ||
2.065 NZD | -0.15% | -0.81% | - | ||
1.877 JPY | +1.18% | -0.47% | - | ||
1.758 NZD | -0.22% | -0.85% | - | ||
1.277 USD | +0.01% | +0.61% | - | ||
1.174 EUR | +0.06% | +0.04% | - | ||
1.087 USD | -0.06% | +0.56% | - | ||
1.075 NZD | -0.10% | -0.69% | - | ||
0.9198 EUR | +0.08% | -0.55% | - | ||
0.846 CAD | +0.19% | +1.06% | - | ||
0.7302 USD | -0.05% | +0.30% | - | ||
0.6721 EUR | +0.03% | -0.21% | - | ||
0.6648 USD | +0.04% | +0.73% | - | ||
0.6182 USD | +0.14% | +1.43% | - | ||
0.6114 EUR | +0.13% | +0.16% | - | ||
0.5713 CHF | -0.44% | -1.99% | - | ||
0.5519 CHF | +0.44% | -0.97% | - | ||
0.087 CNY | +0.38% | 0.00% | - | ||
0.012 USD | +0.28% | 0.00% | - | ||
0.011 EUR | +0.32% | -0.90% | - | ||
- PTS | -.--% | +1.02% | - | ||
Headlines
- Stock Market
- Currencies
- Currency
- News AUD / USD
- Dollar eyes monthly gain as markets look to Fed