Dollar Reaches Highest Since Mid-July; BOC, ECB in Focus
- USD/JPY erases Monday’s drop, approaches top of 6-month range
- Fed uncertainty hampers USD as central banks remain in focus
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The dollar reached its highest since mid-July, as a drop in U.S. Treasuries sent the 10-year yield through a key level and investors waited for a slew of central bank meetings.
The Bloomberg Dollar Spot Index rose about 0.2 percent, and the dollar gained versus the majority of its G-10 peers. Traders saw modest flows before the Bank of Canada meeting on Wednesday and the European Central Bank on Thursday, with the Canadian dollar falling to its lowest since mid-August versus the greenback. Though both central banks are expected to hold rates steady, traders will look for clues on whether the trajectory of policy is changing. A report that three Republican senators may not back tax reform saw the dollar pare gains in late trading.