Safe haven dollar hovered below one-year high ahead of U.S. dollar

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Safe haven dollar hovered below one-year high ahead of U.S. dollar

On Friday, November 8, 2015 : The safe haven dollar hovered below the one-year high by Kevin Buckland TOKYO : The risk-sensitive Australian dollar hit near the three week high overnight, when it surged against the greenback. Share of global stocks rallied and bonds rose after U.S. senators moved to avert a U.S. debt default, while a global easing in energy prices chilled simmering stagflation fears. The improvement in risk appetite favours negative currency pairs, with safe-haven pairs the underperforming performers, Rodrigo Catril, senior FX strategist at National Australia BankAustralia Bank in Sydney, wrote in a client note. The Aussie has made a decent go at breaking higher, but the test will be whether it can stay about $0.7315 after several failed attempts this year, Catril said. Australia's currency opened with 0.73105 from Thursday when it rallied as high as $0.7324 for the first time since Sept. 16. The U.S. Dollar Currency Index, measure the greenback against a basket of six peers, was little changed at 94.202 after trading in a tight range on Thursday and staying within sight of the last week's high of 94.504, a level not seen since late September 2020. The dollar edged up 0.06% to 111.69 yen, and was drifting toward the upper end of the trading range of the past week and a half. The euro hit $1.155.5 after tumbling on Wednesday to an intra-month low of $1.1529. The Federal Reserve has announced that it will start reducing monthly bond purchases as soon as November and follow with interest rate increases possibly next year, as the U.S. central bank's turn from pandemic crisis policies gains momentum. Friday's non-farm payroll data is expected to show continued improvement in the labour market with a forecast of 500,000 jobs added in September, a Reuters poll showed. Meanwhile, sterling lifted a 0.26% gain from overnight trade to trading at $1.3617 Comments from new chief Economist Huw Pill that inflation pressures were proving stickier than initially thought reinforced expectations for a rate hike in February, and maybe even this year.