Dollar slips, euro gains ahead of ECB announcement
European Central Bank (ECB) is expected to take a hawkish stance, with interest rate hikes to begin in July as traders price in 75 basis points of hikes by September
The dollar slipped against a basket of major currencies for a second straight day on Wednesday but still managed to hit a fresh 20-year high against the yen, while the euro strengthened ahead of a policy announcement by the European Central Bank.
The yen weakened to hit 134.47 per dollar, its softest since Feb. 27, 2002, and the euro hit its highest level against the safe-haven yen since Jan. 5, 2015, as the Bank of Japan remains one of the few global central banks to maintain a dovish stance while others have adopted tightening policies of hiking interest rates to combat inflation.
The European Central Bank (ECB) is expected to take a hawkish stance, with interest rate hikes to begin in July as traders price in 75 basis points of hikes by September.
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https://www.cmegroup.com/trading/interest-rates/countdown-to-fomc.html?r....Japanese policymakers, however, stood by their stance supporting a weaker yen on Wednesday, saying it is a positive for the economy.
The Japanese yen weakened 0.95% versus the greenback at 133.87 per dollar, while Sterling was last trading at $1.2549, down 0.31% on the day.
The pound was down against the dollar as political risks and fears of a slowing economy weighed on sterling in the wake of a confidence vote on British Prime Minister Boris Johnson on Monday.
In cryptocurrencies, bitcoin last fell 3.09% to $30,361.18.
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