Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Dollar Up, RBA Keeps Interest Rate Unchanged in Latest Policy Decision

Forex Nov 01, 2021 11:55PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters.

By Gina Lee

Investing.com – The dollar was up on Tuesday morning in Asia, remaining below recent highs as the Reserve Bank of Australia (RBA) led key central banks in handing down their policy decisions.

The U.S. Dollar Index that tracks the greenback against a basket of other currencies inched up 0.04% to 93.918 by 11:50 PM ET (3:50 AM GMT).

The USD/JPY pair inched down 0.05% to 113.92.

The AUD/USD pair was down 0.31% to 0.7501 and the NZD/USD pair inched down 0.10% to 0.7174.

The USD/CNY pair inched up 0.05% to 6.4005 while the GBP/USD pair edged down 0.16% to 1.3651.

The RBA kept its November interest rate unchanged at 0.10% as it handed down its policy decision earlier in the day. The decision comes as the central bank failed to defend its yield target as bonds sold off over recent sessions, and the Reserve Bank of New Zealand is likely to track its Antipodean counterpart’s moves in its next policy decision.

Other central banks could take their cues from the RBA decision, with the U.S. Federal Reserve and Bank of England handing down their policy decisions on Wednesday and Thursday respectively. All three face the common dilemma of surging inflation.

"The elephant in the room is headline and underlying inflation, which are higher than the (Fed) was anticipating. We expect the Fed to state that it is ready to act decisively if inflation is not moving towards target levels when asset tapering ends, but it still expects inflation to fall as supply constraints ease," Standard Chartered (OTC:SCBFF) head of G10 FX Steve Englander told Reuters.

"We think investors will see this as advancing the likely timing of Fed rate hikes. We also expect FX markets to react to the implied Fed threat of rates moving off zero but discount inflation optimism. This adds up to a dollar-positive combination of higher real rates and increased risk-off positions."

Meanwhile, trader positioning is indicative of bets on higher rates, as speculators crowd in to short the yen.

"That's a bet that interest rate trends will continue to move against the yen as they rise elsewhere, particularly in the U.S.," Societe Generale (OTC:SCGLY) strategist Kit Juckes told Reuters.

"In other words, there's a majority that thinks the bond sell-off isn't over yet. It's also, to a smaller extent, a bet that risk sentiment will survive the experience."

Dollar Up, RBA Keeps Interest Rate Unchanged in Latest Policy Decision
 

Related Articles

Dollar Edges Higher; Yuan Falls After China Rate Cut
Dollar Edges Higher; Yuan Falls After China Rate Cut By Investing.com - Aug 15, 2022

By Peter Nurse Investing.com - The U.S. dollar edged higher in early European trade Monday, benefiting from its safe haven status, while the Chinese yuan dipped after a batch of...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (1)
Rodney Dangerfield
Rodney Dangerfield Nov 02, 2021 1:30AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
there's that gold feather pen and inkwell... I wonder what that means on there...
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email