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

Dollar Up, Yen Down as Investors Focus on Central Bank Policy Decisions

ForexOct 28, 2021 01:07AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
© Reuters.

By Gina Lee – The dollar was up on Thursday morning in Asia, with the yen and euro on a downward trend ahead of central bank policy decisions in Japan and Europe.

The U.S. Dollar Index that tracks the greenback against a basket of other currencies inched up 0.02% to 93.817 by 12:58 AM ET (4:58 AM GMT).

The USD/JPY pair was down 0.23% to 113.54.

The AUD/USD pair inched down 0.07 % to 0.7509, with the Australian dollar remaining near its three-month top after the Reserve Bank of Australia declined to purchase a government bond at the heart of its stimulus program. The decision was made despite yields above the targeted 0.1%. The NZD/USD pair edged up 0.18% to 0.7178.

The USD/CNY pair inched up 0.10% to 6.3982 and the GBP/USD pair inched up 0.01% to 1.3748.

The euro inched down 0.1% to $1.1591.

Central bank policy decisions are in the spotlight, and "for the first time in what has felt for a long time, currencies are really driven by interest rate differentials, as central banks start to telegraph where they are in their normalization cycles," Commonwealth Bank of Australia (OTC:CMWAY) senior economist and currency strategist Kim Mundy told Reuters.

The Bank of Japan handed down its policy decision on Thursday. "BOJ is likely to look through the rebound in the CPI caused by rising commodity prices and a weaker yen," and "maintain the status quo on all key policy settings, as widely expected," Bank of America (NYSE:BAC) analysts said in a note.

The European Central Bank (ECB) also hands down its policy decision later in the day, with investors focusing on the central bank’s stance on inflation and its effect on a currently ultra-easy policy stance.

"We think ECB President Christine Lagarde will use all her diplomatic skills to moderate the diverging views of hawks and doves within the Governing Council on Thursday,” ING analysts in a note. A neutral message which "may ultimately defy some of the market's hawkish expectations” is expected, the note added.

Meanwhile, the Bank of Canada could hike interest rates as soon as April 2022 as it expects inflation to stay above target through much of the coming year. The U.S. Federal Reserve will also hand down its policy decision on Nov. 3.

Dollar Up, Yen Down as Investors Focus on Central Bank Policy Decisions

Related Articles

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’s discretion.

Write your thoughts here
Are you sure you want to delete this chart?
Post also to:
Replace the attached chart with a new chart ?
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.
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
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'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
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
Sign up with Email