Currencies

The dollar hit a three-week high against the euro on Wednesday after the ADP national employment report showed U.S. private payrolls increased more than expected in September, ahead of Friday’s highly anticipated jobs data.

The yen steadied close to the middle of its range against the dollar over the past month, after a volatile two days as traders sized up Japan’s incoming prime minister and his cabinet.

The U.S. dollar steadied Monday, as traders awaited a speech by Federal Reserve Chair Jerome Powell later in the session ahead of Friday’s key employment report. 

The dollar weakened in choppy trading on Thursday after a boost from healthy U.S. economic data faded, while the Swiss franc rose after the country’s central bank cut interest rates by 25 basis points.

The U.S. dollar has stabilized Thursday after rebounding strongly overnight as traders reassessed just how aggressive future U.S. rate reductions would be in the wake of the Federal Reserve starting its rate-cutting cycle with a hefty 50 basis-point reduction earlier this month.

The euro rose slightly against the dollar on Wednesday while the yuan hit its strongest level in over a year, as China’s aggressive stimulus package provided the latest shot in the arm for risk appetite.

The Fed started its rate-cutting cycle with a hefty 50 basis-point reduction, and now attention turns to the extent of the central bank’s further cuts this year.

The U.S. dollar dropped on Thursday after the Federal Reserve cut its interest rate by 50 basis points and revised its monetary policy outlook, with the Australian dollar and the Norwegian crown outperforming their peers.

The Japanese yen was the best performer in Asia as it rebounded sharply from some overnight losses against the greenback. The yen remained in sight of 2024 peaks hit earlier this week, with a Bank of Japan meeting on tap later this week.

 Asian currencies firmed on Friday, while the dollar retreated as markets bet that the Federal Reserve will kick off an easing cycle from next week, with focus squarely on the scale of a potential interest rate cut.