[ad_1]
The U.S. dollar reached a 10-week high against the yen on Thursday as optimism grew about the Federal Reserve taking a cautious approach to further monetary easing. The dollar index, which measures the currency against six major rivals, remained near a two-month peak after bets for U.S. rate cuts decreased following strong payrolls data. The euro traded close to its lowest level since August 13 against the dollar.

The upcoming consumer price index (CPI) report for September is expected to show core U.S. Inflation staying steady at 3.2% year-on-year. The recent strong jobs data has reignited the “U.S. exceptionalism trade” as traders have become more confident about the U.S. economy outperforming other major economies.

The Federal Reserve’s focus on maintaining a healthy labor market was confirmed in the minutes from its latest meeting. San Francisco Fed President Mary Daly expressed less concern about rising Inflation, emphasizing the importance of supporting the labor market. The market currently predicts an 85% chance of a 25-basis-point rate cut at the Fed’s next policy meeting in November.

The dollar index remained relatively unchanged at 102.89, close to its recent high. The U.S. currency rose to 149.40 yen, reaching its highest level since early August. The euro traded flat at $1.0940 after hitting a low in the previous session.

The risk-on Australian dollar gained 0.32% to $0.6740, supported by an equity rally in China as the Central bank introduced measures to support the stock market. China’s finance ministry is set to hold a news conference on fiscal policy on Saturday.

The Australian dollar rebounded 0.43% to $0.6089, following a rate cut by the Central bank and a hint at further easing. Meanwhile, the New Zealand dollar rose after hitting a three-week low on Wednesday.

[ad_2]
Inflation-data-3656754″>SOURCE