Investor sentiment is hurt by concerns over the approaching US debt ceiling deadline, which has undermined risk appetite and supported the dollar as a safe haven.
price movements
The dollar hit a six-month high of 138.80 against the yen at the start of Asian trading, reflecting the stark contrast between the US Federal Reserve’s continued tightening approach and the BoJ’s ultra-accommodative policies.
Tina Teng, market analyst at CMC Markets, said markets expect the Federal Reserve to keep interest rates higher for a longer period as “US inflation is still well above target,” as she put it.
“I don’t think the Reserve will start cutting interest rates anytime soon,” she added.
The euro fell 0.05% to $1.0808, down about 2% month-to-date so far, after two straight months of gains.
As for the pound sterling, it rose 0.02% to 1.2440 dollars.
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