Dollar sags as Fed decision looms; yen surges - SABC News - Breaking news, special reports, world, business, sport coverage of all South African current events. Africa's news leader.

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The US dollar slipped from near a one-week peak versus major peers on Wednesday, with traders on tenterhooks before a looming Federal Reserve rate decision that should also give clues on the future policy path.

The yen outperformed, seeing a sudden burst of strength mid-morning Japan time, with traders on alert for possible intervention around the Fed meeting.

US job openings unexpectedly rose, suggesting wage growth remains elevated, while construction spending staged a surprise rebound. “It seems highly unlikely that the Fed will want to promote a positive reaction in risky assets, and the risks to markets in my mind are skewed to a hawkish reaction – equity up, bond yields and the USD lower.”

Japanese authorities are widely considered to have waded in several times again in October to pull the yen back from 32-year lows just shy of 152 per dollar, although they declined to confirm any action.

 

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