The euro moved away from its lowest levels in nearly three months against the dollar on Thursday as attention turned to the imminent meeting of the European Central Bank to decide on interest rates, after US inflation data failed to change expectations that the Federal Reserve would stop raising interest rates in... Its meeting next week.
The yen rose from its lowest levels in almost ten months as a decline in long-term Treasury yields reduced support for the US currency.
The Australian dollar rose, then fell, then rose again as traders find it difficult to determine what labor market data means for interest rate expectations.
The dollar index, which measures the performance of the US currency against six competing currencies, fell 0.16 percent to 104.56 by midday Thursday in Asian transactions.
The euro also rose 0.21 percent to $1.07515, continuing its rise from the lowest level recorded last week at $1.0686.
The dollar fell 0.22 percent to 147.105 yen, down from the highest level recorded last week at 147.875.
Yields on 10-year Treasury bonds fell another 1.3 basis points to about 4.235 percent in Thursday trading.
The US Labor Department said on Wednesday that the consumer price index rose 0.6 percent last month, the largest increase since June 2022. However, core inflation, which is of greater concern to the Federal Reserve because it excludes food and energy prices, averaged 4.3 percent over the past year. Annual basis in August compared to 4.7 percent in the previous month.
The Australian dollar rose as much as 0.54 percent to its highest level since September 5 at $0.64545 after figures showed the economy added 64,900 jobs in August.
