Dollar Index Falls Amid Possible Bank of Japan Intervention
The dollar index fell in tandem with the decline of USDJPY due to possible intervention from the Bank of Japan. This has led to a short-term rally in major currencies against the US Dollar.
The euro could trade within the range of $1.1550-$1.1650, while the Australian dollar is expected to rise towards 0.73. The Indian rupee strengthened in the offshore market after the RBI stated $127 million FCNR deposits, which may lead to further Rupee strength.
The Chinese yuan can strengthen towards $6.70, with the USDJPY and EURJPY looking bearish towards 158-156 and 184 respectively for the near term.