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U.S. Dollar Stays Near 9-Week High, Loonie Jumps

2018-10-25 11:57:37Basics of Trading
U.S. Dollar Stays Near 9-Week High, Loonie Jumps

The dollar remained near nine-week highs against other currencies on Wednesday, while the loonie surged after the Bank of Canada increased rates.

The U.S. dollar index, which measures the greenback’s strength against a basket of six major currencies, was up 0.46% to 96.15 by 11:42 AM ET (15:42 GMT).

The Canadian dollar was higher, with USD/CAD down 0.47% t0 1.3022 after the Bank of Canada increased interest rates to 1.75% from 1.50%, as expected.

The dollar inched up against the Japanese yen, with USD/JPY up 0.05% to 112.49.

Meanwhile the euro was at its lowest level since August 17, after data showed that euro zone private sector activity grew at the slowest pace in more than two years in October, increasing concerns over the economic impact of trade wars.

Worry over Italy’s budget also remained in focus after the European Union took the unprecedented step of rejecting Rome’s 2019 draft budget on Tuesday, amid concerns over the impact of increased spending on already high national debt levels.

EUR/USD fell 0.69% to 1.1393.

Sterling remained under pressure as Brexit talks stalled just five months until the UK is scheduled to leave the EU. The pound was near one-and-a-half month lows, with GBP/USD falling 0.62% to 1.2903.

Elsewhere, the Australian dollar was lower, with AUD/USD falling 0.20% to 0.7071 and NZD/USD decreasing 0.43% to 0.6523.