The dollar rose on Thursday, following earlier falling to its lowest level in a month in volatile trading ahead of an expected interest rate hike by the European Central Bank.
Meanwhile, the yen gained some strength ahead of the Bank of Japan’s monetary policy decision on Friday, rising to 145.11 once morest the dollar, its highest level since Oct. 21.
The dollar has fallen sharply in recent days, with investor sentiment improving amid signs that the Federal Reserve is considering slowing the pace of increase interest rates in December.
On Thursday, the euro reached its highest level in more than a month at $1.0094, before it reversed course. It fell in the last trading 0.13% to $1.0066 before the European Central Bank’s decision.
The bank is expected to raise the benchmark interest rate by 75 basis points to 1.5%, its highest level in 13 years.
The dollar rose once morest a basket of currencies by 0.16%, to 109.73, following rebounding from its lowest level in a month at 109.53 earlier Thursday. The British pound fell 0.27% to $1.1596.
The yen also rose in the last trading 0.52% once morest the dollar to 145.67. The yen witnessed volatile trading following it was raised regarding the government’s intervention to support it on Friday and Monday.
Markets still expect the Federal Reserve to raise interest rates by another 75 basis points next week, although many investors are expecting a smaller increase in December.
The Australian dollar fell 0.18% to $0.6483 as higher inflation data increased pressure on the Reserve Bank of Australia to raise interest rates more sharply.
