The Australian dollar hit a nine-month high on Tuesday after the country’s central bank signaled higher interest rates were closer, while the euro languished near a one-week low in the amid talks of new sanctions against Russia.
The Aussie rose 0.81% to $0.7603, its strongest since late June, after the Reserve Bank of Australia backed away from its pledge to be ‘patient’ on policy tightening, all keeping the policy rate at a record high for now, as widely expected. “The RBA has dropped its ‘patience’ narrative of the hike forecast, so that means the RBA is going to rise over the next few months,” likely in June, said Joseph Capurso, a strategist at Commonwealth Bank. from Australia.
“The Aussie is comfortably crossing that resistance level at 75.40 cents, so we believe it will move closer to 77 cents over the next few months,” although it may stop at 76 cents for now. did he declare. The euro was little changed at $1.09645 after falling to $1.0960 in the previous session for the first time since March 28. It had hit a one-month high at $1.1185 a few days earlier on heightened optimism for an end to the conflict in Ukraine.
The United States and European countries pledged on Monday to punish Moscow for the killings of civilians in northern Ukraine, where a mass grave and tied up bodies of people shot at close range were found in a recaptured city. Russian forces. New sanctions could include restrictions on the billions of dollars of energy that Europe still imports from Russia. The Kremlin has denied charges related to the killing of civilians.
The euro’s woes boosted the dollar index, which held near a one-week high of 99.083 hit overnight. It last stood at 99.012. However, the dollar weakened 0.17% to 122.55 yen, broadly tracking movements in long-term US Treasury yields, as it continued to consolidate around 122.5 after pulling back from a multi-year high of 125.105 on March 28.
Bank of Japan Governor Haruhiko Kuroda added pressure to the currency pair, saying the recent pace of appreciation was “somewhat rapid” and policymakers are watching moves “carefully.”
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