Dollar Steadies Amid US Inflation Pressures and Rate Hikes
The US Dollar Index held steady at around 100.30 after two days of losses, while the USD/JPY pair briefly rose above 158.00 following the Bank of Japan's decision to raise interest rates by 25 basis points to 1.25%. However, it then retreated towards 157.00 as reports emerged that the BoJ conducted a rate check during the New York session.
Chicago Fed President Austan Goolsbee stated that strong demand, tariffs, energy and other supply shocks are all fuelling US inflationary pressures, reiterating the Federal Reserve's firm stance on inflation. Minneapolis Fed President Neel Kashkari also emphasized that inflation remains too high in 'all aspects' of the US economy.
WTI crude extended its four-day decline to nearly 8% below last week's highs, trading around $93.50-$94.00 as reports suggested Saudi Arabian crude exports increased significantly in September, easing supply disruption concerns.
The Australian Dollar outperformed several peers as expectations built for another Reserve Bank of Australia rate increase next week, with AUD/JPY trading around 112.10 and AUD/USD hovering near 0.7120.